A shift in a firm's demand curve for labour occurs when there is a change in the

Question

Quizplus · Accepted Answer

A shift in a firm's demand curve for labour is caused by a change in the price of the output. If the price of the output increases, the firm will demand more labour at each wage rate, resulting in a shift to the right of the demand curve. Conversely, if the price of the output decreases, the firm's demand for labour will decrease, resulting in a shift to the left of the demand curve. The other options (wage rate, opportunity cost of labour, working-age population, and marginal cost of labour) may affect the position along the demand curve, but they do not cause a shift in the curve itself.

A Shift in a Firm's Demand Curve for Labour Occurs