Any change that affects the entire schedule relating the quantity of labor and the value of the marginal product of labor will ________,assuming all else equal.

Question

Quizplus · Accepted Answer

Any change that affects the entire schedule relating the quantity of labor and the value of the marginal product of labor will shift the labor demand curve because it represents a change in the overall demand for labor at each wage rate. A rotation in the labor demand curve would be caused by a change in the price of the good or service being produced. A change in the wage rate would be one possible cause of a shift in the labor demand curve, but it is not the only possible cause. The labor demand curve would only become vertical if the marginal product of labor were zero or negative at all quantities of labor, which is unlikely in real-world situations.

Any Change That Affects the Entire Schedule Relating the Quantity