Exhibit 10- 7 Demand for labor curves

In Exhibit 10-7, which of the following could have caused the shift in labor demand from D ₁ to D ₂ ?

Question

Exhibit 10- 7 Demand for labor curves In Exhibit 10-7, which of the following could have caused the shift in labor demand from D ₁ to D ₂ ?

Quizplus · Accepted Answer

An increase in the demand for the product would increase the demand for labor needed to produce the product, causing a rightward shift of the labor demand curve from D ₁ to D ₂. Decrease in wages (B) would result in a movement along the labor demand curve, not a shift. Decrease in price of product (C) would affect the demand for the product, not the demand for labor. Decrease in demand for the product (D) would cause a leftward shift of the labor demand curve, not a rightward shift.

Exhibit 10- 7 Demand for Labor Curves