If the wage rate rises,firms will find that:
A)their labor demand curve shifts leftward.
B)their labor demand curve shifts rightward.
C)they move upward and to the left along the labor demand curve.
D)they move downward and to the right along the labor demand curve.

Question

Quizplus · Accepted Answer

When the wage rate rises, firms will move upward and to the left along the labor demand curve because they will demand less labor at the higher wage, assuming all other factors remain constant. This movement reflects a decrease in the quantity of labor demanded as the cost of labor increases.

If the Wage Rate Rises,firms Will Find That