Figure 8.4-Shifts of labor supply and labor demand
Answer the indicated question(s)by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market,ceteris paribus.
-Refer to Figure 8.4.Demand increases for the product that labor produces.

Question

Figure 8.4-Shifts of labor supply and labor demand
Answer the indicated question(s)by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market,ceteris paribus. 
-Refer to Figure 8.4.Demand increases for the product that labor produces.

Quizplus · Accepted Answer

An increase in demand for the product that labor produces would lead to an increase in demand for labor. This is shown in Diagram B, where both the labor demand and labor supply curves shift to the right, resulting in an increase in equilibrium quantity and price.

Figure 8.4-Shifts of Labor Supply and Labor Demand