In a perfectly competitive labor market, the industry demand curve is ________ and the industry supply curve is ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive labor market, the industry demand curve for labor is downward sloping because employers will want to hire more workers at lower wages and fewer workers at higher wages. The industry supply curve is upward sloping because more workers are willing to work as wages increase.

In a Perfectly Competitive Labor Market, the Industry Demand Curve