Question #230814

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

truth or false .




Expert's answer

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.


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