The demand for labour increases (that is, the demand for labour curve shifts rightward) if the
A) price of the firm's output falls.
B) price of the firm's output rises.
C) wage rate increases.
D) wage rate decreases.

Question

Quizplus · Accepted Answer

When the price of a firm's output rises, it typically means the firm can make more money from selling its products. This increase in potential revenue often leads to the firm wanting to produce more, which in turn increases the demand for labor to produce these additional goods or services, causing the demand for labor curve to shift rightward.

The Demand for Labour Increases (That Is, the Demand for Labour