Practise identifying why firms demand more or fewer workers, especially when final demand, revenue or subsidies change employment.
Total revenue for American Airlines fell from $ 45.77 billion in 2019 to $ 17.34 billion in 2020. In response, American Airlines made 31000 staff redundant.
Which one of the following was the most likely reason for these staff redundancies?
The number of airline passengers rose
The derived demand for labour fell
Government employment subsidies to airlines increased
Taxation on airline employees decreased
B