Which of the following results in a rightward shift of the market demand curve for labour?

Question

Quizplus · Accepted Answer

An increase in demand for the firm's product will likely result in an increase in the demand for labour to produce the product, which will shift the market demand curve for labour to the right.

None of the other options would result in a rightward shift of the market demand curve for labour. A decrease in the firm's product price (option A) would decrease the revenue of the firm and could lead to a decrease in the demand for labour, shifting the demand curve to the left. An increase in the wage rate (option B) would increase the cost of labour for firms and could lead to a decrease in the demand for labour, shifting the demand curve to the left. A decrease in labour productivity (option C) would make labour less productive and less valuable, potentially leading to a decrease in demand for labour, again shifting the demand curve to the left.

Which of the Following Results in a Rightward Shift of the Market