Question by MachoMachoMan B: Economics –Supply and Demand for Labour?
Can someone help me with this question? Explain if this statement is True or False:
“As more people buy Internet service, the price of Internet service will fall. The fall in the price of Internet service will lead to a fall in the wage rate paid to Web page designers.”
Answer by Hubris252
False. The increased demand for internet services means more demand for web page designers because more stores open online outlets to tap new markets. As the number of people using the internet increases, so does the wage paid to people who design the pages they look at.
Jon, your explanation points out why the answer is false but you close with “answer true.” Why?
Know better? Leave your own answer in the comments!