Assuming all else equal,if the price of fuel and energy increases,________.
A) a firm's labor demand curve shifts to the left
B) a firm's labor demand curve shifts to the right
C) a firm moves to a lower point along its labor demand curve
D) a firm moves to a higher point along its labor demand curve

Question

Quizplus · Accepted Answer

When the price of fuel and energy increases, it increases the cost of production for firms. As a result, firms will need to reduce their expenses to maintain their profitability. This can be achieved by reducing their labor costs, which means there will be a decrease in labor demand. Therefore, the labor demand curve shifts to the left.

Assuming All Else Equal,if the Price of Fuel and Energy