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 events would most likely explain 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 events would most likely explain the shift of the labor-demand curve from D₁ to D₂?

Quizplus · Accepted Answer

A technological advance that increases the marginal product of automobile workers would increase the demand for labor in the automobile worker market, leading to a shift in the labor-demand curve from D₁ to D₂. The decrease in the price of automobiles (option A) could increase the demand for labor, but it is not as likely as a technological advance. Option B, the entrance of a large number of immigrants, would increase the labor supply but not necessarily affect the labor-demand curve. Therefore, option C is the best choice.

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