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 the labor-supply curve to shift:

Question

Quizplus · Accepted Answer

The labor-supply curve represents the availability of workers willing to work at different wage levels. The decision of producers to purchase automated machines affects the demand for labor, not the supply. Therefore, the labor-supply curve itself does not shift; instead, the demand for labor decreases, potentially leading to lower wages.

If Producers Who Hire Labor in a Competitive Labor Market