For a competitive,profit-maximizing firm,the demand curve for labor will shift in response to a change in the

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The demand curve for labor is derived from the demand for the products that the firm produces. Therefore, a change in the price of the product will shift the demand for labor as the firm adjusts production levels to respond to changes in demand. Changes in wage rates may affect the quantity of labor demanded but do not shift the demand curve itself. Similarly, changes in the quantity of labor demanded do not shift the demand curve, but rather represent movements along the curve in response to changes in the wage rate.

For a Competitive,profit-Maximizing Firm,the Demand Curve for Labor Will Shift