Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The bakery's decision is an example of derived demand for labor, as the need for bakers arises from the increased demand for cakes.
B
The bakery is hiring more bakers because they anticipate future increases in cake prices, regardless of current demand.
C
The decision to hire more bakers is based on past sales data rather than current market demand for cakes.
D
The bakery's hiring process is unrelated to product demand; they hire based on seasonal trends only.
Understanding the Answer
Let's break down why this is correct
Answer
The bakery's decision to hire more bakers is an example of derived demand for labor. This means that the need for workers, in this case bakers, comes from the increased demand for their product, which is specialty cakes. Since the wedding expo has made more people interested in buying these cakes, the bakery recognizes that they need extra help to make enough cakes to meet this demand. For example, if the bakery used to sell 20 cakes a week and now expects to sell 50 because of the expo, they will need more bakers to produce those additional cakes. Therefore, the higher demand for cakes directly leads to the bakery needing more bakers to fulfill that demand.
Detailed Explanation
The bakery needs more bakers because more people want cakes. Other options are incorrect because This answer suggests the bakery is hiring based on future price guesses; This option implies the bakery is looking at old sales data.
Key Concepts
Derived Demand for Labor
Market Demand for Goods
Labor Market Dynamics
Topic
Derived Demand for Labor
Difficulty
hard level question
Cognitive Level
understand
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