The quantity demanded of labor will decrease if:
A)the productivity of labor decreases.
B)the productivity of labor increases.
C)the price of labor rises.
D)there is an increase in the supply of a factor labor uses.

Question

Quizplus · Accepted Answer

When the price of labor, or wages, rises, employers will demand less labor because it becomes more expensive. This is based on the law of demand, which states that as the price of a good or service increases, the quantity demanded decreases.

The Quantity Demanded of Labor Will Decrease If