Question

rons woodworking supplies high quality wooden bowls made from xotic hardwoods form around the world for its customers Ron has hired several employees. Explain two facos that impact rons demand for workers in his shop

Answer 1

Answer:

1. the demand for exotic hardwoods : if the demand for the exotic hard woods is low, Ron would want to reduce his scale of production. As a result, they would reduce their demand for labour. If the demand for exotic hardwoods is high, they would increase their scale of production and increase their demand for labour

2. the price of exotic hardwoods : if the price of exotic hardwoods falls, the profit that would be made from selling exotic hardwoods would reduce. As a result, the firm would want to reduce their supply of exotic hardwoods. This would lead to a decrease in demand for labour. If on the other hand, the price of exotic hardwoods increases, to increase their profit, Ron would increase the production of exotic hardwoods and as a result increase its demand for labour

Explanation:

Ron's demand for workers is known as derived demand. Derived demand is when the demand for a good or service depends on the demand for another good or service