Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will __ and employment of agricultural workers will _
a) increase; increase
b) decrease; decrease
c) decrease; not change
d) increase; decrease

Food is produced by the agricultural workers or farmers and sold in the market. Now, holding the other things constant, if there is a fall in the price level of food then as a result there is a fall in the real wage of the agricultural workers because of the reduction in the wages as selling price of their product decreases.

This will also lead to a reduction in employment of agricultural workers because of lower real wage.

Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will ______ and employment of agricultural workers will _____ a) increase; increase b) decrease; decrease c) decrease; not change d) increase; decrease

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Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will __ and employment of agricultural workers will _
a) increase; increase
b) decrease; decrease
c) decrease; not change
d) increase; decrease