If a producer who hires labor in a competitive labor market decides to purchase a new, automated machine that completes the work of 30 employees, we would expect the labor _______ curve in that market to shift to the _______.

Question

Quizplus · Accepted Answer

The introduction of an automated machine that replaces 30 employees reduces the producer's need for labor, thus decreasing the demand for labor in that market. This is represented by a leftward shift in the labor demand curve.

If a Producer Who Hires Labor in a Competitive Labor