If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees,we would expect:

Question

Quizplus · Accepted Answer

By purchasing the new automated machine, the producers are reducing their demand for labor as they no longer require the same amount of employees to complete the work. This would cause a shift to the left in the labor-demand curve in the market. The labor-supply curve remains unchanged.

If Producers Who Hire Labor in a Competitive Labor Market