Suppose consumer tastes and preferences shift from a desire to go skiing to an i

Question

Suppose consumer tastes and preferences shift from a desire to go skiing to an interest in snowboarding. If skis and snowboards are produced by different firms, then firms that produce snowboards will experience: a rise in prices, which will induce them to decrease production and reduce the number of workers. a rise in prices, which will induce them to increase production and increase the number of workers. a rise in prices, which will induce them to increase production and reduce the number of workers. a decline in prices, which will induce them to increase production and increase the number of workers.

Explanation / Answer

a rise in prices, which will induce them to increase production and increase the number of workers

As more demand in short term will raise prices , that will enable the firms to raise the production to meet demand for which more labor will require

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