The labor demand curve is________ sloping because there is a ________relationship between the wage rate and the quantity of labor demanded.

Question

Quizplus · Accepted Answer

The labor demand curve is downward sloping because there is a negative relationship between the wage rate and the quantity of labor demanded. As the wage rate increases, firms will want to substitute capital for labor or reduce their overall production, leading to a decrease in the quantity of labor demanded. Similarly, as the wage rate decreases, firms will want to hire more workers, leading to an increase in the quantity of labor demanded.

The Labor Demand Curve Is________ Sloping Because There Is a ________Relationship

The Labor Demand Curve Is Sloping Because There Is a Relationship