The demand for labor is likely to increase when
A)the supply of the good it produces falls
B)the demand for the good it produces rises
C)the supply of the good it produces rises
D)the demand for the good it produces falls
E)the real wage rate rises

Question

Quizplus · Accepted Answer

When the demand for the good produced by labor rises, the producers will need to produce more of the good, which in turn will require more labor. This will increase the demand for labor.

The Demand for Labor Is Likely to Increase When