Question

Suppose that an increase in health consciousness increases the demand for fitness centers across the country. Other things being equal, we can expect the wages of fitness instructors to:

Answer 1

Answer:

Increase.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.

According to the law of demand, there exist a negative relationship between the quantity of goods or services demanded and the price of goods or services i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

In this scenario, an increase in health consciousness increases the demand for fitness centers across the country. Other things being equal (ceteris paribus), we can expect the wages of fitness instructors to increase because their services would be sought or demanded by the trainers.