When the demand for wheat rises, the demand for farm labor (LO1) a) rises b) falls c) may rise or fall

Short Answer

Expert verified
The correct answer is a) As the demand for wheat rises, the demand for farm labor (LO1) rises. This is because as the demand for wheat increases, more wheat production is needed, leading to a higher demand for farm labor to plant, care for, and harvest the crop.

Step by step solution

01

Understanding the relationship between demand for wheat and farm labor

As demand for wheat rises, more wheat needs to be produced to meet the demand. In order to produce more wheat, farmers will require more workers to plant, care for, and harvest the crop. This, in turn, leads to an increase in demand for farm labor (LO1).
02

Analyzing the options

Based on the relationship between the demand for wheat and farm labor, we can now analyze the given options: a) Farm labor demand rises: This option suggests that when demand for wheat increases, the demand for farm labor also increases. This aligns with the relationship we established earlier. b) Farm labor demand falls: This option proposes that when demand for wheat increases, the demand for farm labor decreases. This contradicts the established relationship and is not accurate. c) Farm labor demand may rise or fall: This option implies that the demand for farm labor may either increase or decrease when demand for wheat increases. This option is also not accurate, as we have established that rising demand for wheat will lead to rising demand for farm labor.
03

Choosing the correct option

Based on our understanding of the relationship between the demand for wheat and farm labor, we can conclude that: The correct answer is a) As the demand for wheat rises, the demand for farm labor (LO1) rises.

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