A firm's labor demand curve is typically
A) a vertical line.
B) a horizontal line.
C) upward sloping.
D) downward sloping.
E) associated with a slope equal in absolute value to the slope of the labor supply curve.

Question

Quizplus · Accepted Answer

The labor demand curve is typically downward sloping because as wages decrease, firms are willing to hire more workers, and as wages increase, firms are less willing to hire additional workers. This reflects the law of demand.

A Firm's Labor Demand Curve Is Typically