Question

As demand for commodity X increases, the producer employ more units of Labour in order to increase production​

Answer 1

As demand for commodity X increases, the producer employs more units of Labour in order to increase production​.

• When the demand for a unit of commodity increases then the producer will employ more units of labour in order to increase production so that the demand level is met.
• This may include employing new capital and increasing labour hours so that the demand is met in time.
• By increasing the rate of production, the producer is bound to earn profit.