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:

Question

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When producers purchase an automated machine that replaces 30 employees, it reduces the demand for labor in the market. As a result, the labor-demand curve in that market would shift leftward. This shift would cause a decrease in the equilibrium wage and quantity of labor. The labor-supply curve would not necessarily shift because the number of workers available to work in the market remains the same, only the demand for their services changes.

If Producers Who Hire Labor in a Competitive Labor Market