Answer to Question #230814 in Microeconomics for azlan shah

Question

If salaries of journalist go up then demand curve of newspaper will shift upward.

truth or false .

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.