Figure 19-2

In Figure 19-2, the derived demand curve is the line

Question

Figure 19-2

In Figure 19-2, the derived demand curve is the line

Quizplus · Accepted Answer

The derived demand curve in Figure 19-2 is the line CDEF, which shows the quantity of labor demanded at different wage rates. The curve slopes downwards because, as the wage rate increases, the cost of labor increases and firms will demand less labor. The sections of the graph before and after CDEF represent the industry demand curve and the supply of labor curve, respectively.

Figure 19-2 In Figure 19-2, the Derived Demand Curve Is the Line