Arrange the following steps in the correct order that illustrates the relationship between product demand and labor demand: A) Increase in consumer demand for a product B) Firms increase production to meet demand C) Firms require more labor to increase production D) Labor demand increases as a result

The relationship between product demand and labor demand can be understood through a sequence of events. First, when there is an increase in consumer demand for a product, firms notice that more people want to buy it. To meet this higher demand, firms will then increase their production. As production ramps up, firms require more labor to help create the additional products, leading to an increase in labor demand. For example, if a bakery sees more customers wanting bread, it will bake more bread and, in turn, hire more bakers to keep up with the demand.