The labor demand curve shows the
A) number of workers that firms will want to hire at any wage rate
B) number of people who will want jobs at any wage rate
C) amount of labor that a firm needs to produce a given amount of output
D) equilibrium wage rate and number of workers employed
E) amount of output workers will be able to buy for a given number of hours worked

Question

Quizplus · Accepted Answer

The labor demand curve shows the number of workers that firms will want to hire at any wage rate. This is because firms need to balance the cost of hiring additional workers with the additional output they can produce. As the wage rate increases, firms will hire fewer workers to maintain the same level of production, resulting in a downward sloping labor demand curve.

The Labor Demand Curve Shows the