Which of the following will not cause the labour demand curve to shift to the right?
A)an increase in the price of the firm's product
B)a technological improvement that increases labour productivity
C)an increase in human capital in the labour force
D)an increase in the market wage rate

Question

Quizplus · Accepted Answer

An increase in the market wage rate would increase labour costs for the firm, decreasing its demand for labour, and thus shifting the labour demand curve to the left, not to the right. On the other hand, A, B, and C would increase the firm's profitability, making it more willing to hire more workers at any given wage rate, shifting the labour demand curve to the right.

Which of the Following Will Not Cause the Labour Demand