Question

A recent survey features some negative reports about a popular sunscreen lotion. As a result of the survey, the demand for lotion declines. The wages of the workers in this firm ____
a. will be reduced.
b. will be increased.
c. will fall and then increase.
d. will become fixed.
e. are not affected.

Answer 1

Answer: The workers wages will be reduced.

Explanation: As the demand for the sunscreen reduces, it would lead to a reduction in the income of the production company, therefore the company would be unable to maintain the salary pattern of the workers, therefore there would be a need for workers wages reduction.