The demand curve for labor would shift leftward as the result of
A)an increase in the price of the product labor is producing.
B)a decrease in the productivity of labor.
C)an increase in the price of labor.
D)a decrease in the price of capital, provided the output effect exceeds the substitution effect.

Question

Quizplus · Accepted Answer

A decrease in the productivity of labor will reduce the demand for labor, as employers will need fewer workers to produce the same amount of output.

The Demand Curve for Labor Would Shift Leftward as the Result