Which of the following will not cause the labor demand curve to shift to the right?
A)an increase in the price of the firm's product
B)a technological improvement that increases labor productivity
C)an increase in human capital in the labor force
D)an increase in the market wage rate

Question

Quizplus · Accepted Answer

An increase in the market wage rate would actually cause the labor demand curve to shift to the left, as it would increase the cost of hiring workers and make it less profitable for firms to employ them. The other options would all increase the demand for labor, either by increasing the firm's revenue and profitability (option A), enhancing the productivity of workers (option B), or improving the quality of the labor force (option C).

Which of the Following Will Not Cause the Labor Demand