Figure 18-4
This figure below shows the labor market for automobile workers.The curve labeled S is the labor supply curve,and the curves labeled D₁ and D₂ are the labor demand curves.On the horizontal axis,L represents the quantity of labor in the market.
-Refer to Figure 18-4.Which of the following is a possible explanation of the shift of the labor-demand curve from D₁ to D₂?

Question

Figure 18-4
This figure below shows the labor market for automobile workers.The curve labeled S is the labor supply curve,and the curves labeled D₁ and D₂ are the labor demand curves.On the horizontal axis,L represents the quantity of labor in the market.

-Refer to Figure 18-4.Which of the following is a possible explanation of the shift of the labor-demand curve from D₁ to D₂?

Quizplus · Accepted Answer

An increase in the demand for automobiles would lead to an increase in the demand for automobile workers, causing the labor-demand curve to shift to the right from D₁ to D₂. This could occur if the price of automobiles increased, indicating a higher demand for them in the market.

Figure 18-4 This Figure Below Shows the Labor Market for Automobile Workers.The