Refer to the graph. A move from b to a along labor demand curve D ₁ would result from
A)a decrease in the price of a substitute resource, assuming that the substitution effect exceeds the output effect.
B)an increase in the wage rate.
C)a decrease in the wage rate.
D)an increase in the demand for the product that this labor is helping to produce.

Question

Refer to the graph. A move from b to a along labor demand curve D ₁ would result from
A)a decrease in the price of a substitute resource, assuming that the substitution effect exceeds the output effect. 
B)an increase in the wage rate. 
C)a decrease in the wage rate. 
D)an increase in the demand for the product that this labor is helping to produce.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. A move from b to a along labor demand curve D ₁ would result from
A)a decrease in the price of a substitute resource, assuming that the substitution effect exceeds the output effect. 
B)an increase in the wage rate. 
C)a decrease in the wage rate. 
D)an increase in the demand for the product that this labor is helping to produce.

Refer to the Graph