Assume wages paid by a firm to its workers decrease. What will be the

Assume wages paid by a firm to its workers decrease. What will be the reaction of consumers as the market moves to its new equilibrium?

A) Quantity demanded will decrease.
B) Quantity demanded will increase.
C) The demand curve will shift to the left.
D) There will be no reaction by consumers, since input prices determine supply, not demand.

 

ANSWER

B

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