The labor demand curve is negatively sloped because:
A) more people are willing to work at low wages than at high wages.
B) more people are willing to work at high wages than at low wages.
C) employers are willing to hire more people at low wages.
D) employers are willing to hire more people at high wages.

Question

Quizplus · Accepted Answer

Employers are more inclined to hire a larger number of workers when the cost of labor (wages) is lower, reflecting the principle of diminishing returns where each additional employee contributes less to output than the previous one, making it less cost-effective to hire at higher wages.

The Labor Demand Curve Is Negatively Sloped Because