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Derived Demand for Labor
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How would a significant increase in consumer demand for electric vehicles likely affect the labor market for automotive engineers?

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Choose the Best Answer

A

Increase demand for automotive engineers due to higher production needs.

B

Decrease demand for automotive engineers as firms automate production.

C

No change in demand for automotive engineers as the market is saturated.

D

Increase demand for automotive engineers but decrease wages due to competition.

Understanding the Answer

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Answer

If more people want to buy electric vehicles, companies will need to produce more of them. This increase in production means they will need more automotive engineers to design, develop, and improve these vehicles. As a result, the demand for engineers who specialize in electric vehicles will rise, leading to more job opportunities in that field. For example, a car company might hire additional engineers to create better battery technology, which is crucial for electric cars. Overall, a significant rise in consumer demand for electric vehicles creates a greater need for skilled workers, changing the labor market for automotive engineers.

Detailed Explanation

When more people want electric cars, companies need to make more of them. Other options are incorrect because Some might think that if companies automate, they need fewer engineers; The idea that the market is full is wrong.

Key Concepts

Derived Demand for Labor
Market Dynamics
Labor Market Trends
Topic

Derived Demand for Labor

Difficulty

medium level question

Cognitive Level

understand

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