Question

Which of the following scenarios could lower a firm’s demand for labor? Correct Answer(s) James operates a restaurant in a seaside tourist town. It is winter and all the tourists have left. Katie owns a coffee shop that used to have to compete with a nearby café. The café recently went out of business. Amy must pay more money to obtain the wood needed to construct chairs at her factory. Calvin’s bookstore is located near a college campus. School has just started and many students are returning to the area. Rex invests in new computer software that will automate his bookkeeping.

Answer 1

Answer:

James operates a restaurant in a seaside tourist town. It is winter and all the tourists have left

Rex invests in new computer software that will automate his bookkeeping.

Explanation:

In winter, the patronage at James' resturant would drop because tourists would have left. Because demand at the resturant has dropped, James would reduce his demand for Labour which are his staffs. He would let some staffs go temporarily to reduce costs .

If Rex invests in a software that automates his book keeping, he wouldn't need an accountant to help with his book keeping, so demand for labour would fall.

After Katie's competition closes down, more people would patronise Katie. Katie's demand for Labour would increase because of the influx of customers.

Amy would need labour to obtain wood; her demand for Labour would increase.

If school is just resuming, there would be a high influx of people into the bookstore, the bookstore would increase its demand for Labour because of the high influx of customers .

I hope my answer helps you.