A change in the wage causes a shift in the supply curve for labor and a
A) shift along the demand curve for labor.
B) shift in the demand curve for labor.
C) rotation in the demand curve for labor.
D) It cannot be determined by the information provided.

Question

Quizplus · Accepted Answer

A change in the wage causes a movement along the demand curve for labor, not a shift in the demand curve itself. The demand curve represents the relationship between the quantity of labor demanded and the wage rate, assuming other factors remain constant. A change in the wage rate results in a movement along this curve to a new point, reflecting a change in the quantity of labor demanded at the new wage rate.

A Change in the Wage Causes a Shift in the Supply