An individual employer's demand curve for labour can be shown as a(n)___________ function of the wage rate.

Question

Quizplus · Accepted Answer

An individual employer's demand curve for labour is downward-sloping because as the wage rate increases, the employer will demand less labour as it becomes more expensive to hire workers. Similarly, as the wage rate decreases, the employer will demand more labour as it becomes more affordable to hire workers. This relationship between the wage rate and the quantity of labour demanded creates a downward-sloping demand curve.

An Individual Employer's Demand Curve for Labour Can Be Shown