Figure 18-10

-Refer to Figure 18-10.Assume W₁ = $20 and W₂ = $22,and the market is always in equilibrium.A shift of the labor demand curve from D₁ to D₂ would

Question

Figure 18-10
 
-Refer to Figure 18-10.Assume W₁ = $20 and W₂ = $22,and the market is always in equilibrium.A shift of the labor demand curve from D₁ to D₂ would

Quizplus · Accepted Answer

A shift of the labor demand curve from D₁ to D₂ indicates an increase in demand for labor, which typically increases the wage rate. Since W₁ = $20 and W₂ = $22, the value of the marginal product of labor increases by $2, reflecting the higher wage rate in equilibrium.

Figure 18-10 -Refer to Figure 18-10.Assume W₁ = $20 and W₂ =