Answer to Question #230771 in Microeconomics for khizra

Question

if the salaries of the journalist go up then the demand curve of the newspaper will shift upward true or false explain

Answer 1

Answer: False

Journalists are the factor of production for the newspapers. If the salaries of journalists go up then the cost of producing newspapers will go up. As a result, the supply curve of newspapers will shift to the left. And the prices of newspapers will go up. There will be no shift in the demand curve.