If the wage paid to workers increases, the labor demand curve

Question

Quizplus · Accepted Answer

When the wage paid to workers increases, there is a movement along the labor demand curve, but the curve itself does not shift. The reason for this is that the labor demand curve shows the relationship between the wage rate and the quantity of labor demanded, assuming all other factors are held constant. When the wage rate increases, firms will demand less labor, but this movement is along the same demand curve.

If the Wage Paid to Workers Increases, the Labor Demand