A change in the wage causes a shift in the supply curve for labor and a
A)movement along the demand curve for labor.
B)shift in the demand curve for labor.
C)rotation in the demand curve for labor.
D)It cannot be determined by the information provided.

Question

Quizplus · Accepted Answer

A change in the wage rate leads to a movement along the demand curve for labor, as employers adjust the quantity of labor they demand based on the new wage rate. This does not shift the demand curve itself, which would require a change in factors other than the wage rate, such as productivity or demand for the final product.

A Change in the Wage Causes a Shift in the Supply