The demand for labor is likely to increase when _____
A)the marginal product of labor decreases.
B)the demand for the final good it produces rises.
C)the opportunity cost of leisure decreases.
D)the marginal revenue product of labor decreases.
E)the wage rate rises.

Question

Quizplus · Accepted Answer

When the demand for the final good a laborer produces rises, the producer will want to produce more, which means there is an increase in demand for labor. This is because producers need more workers to meet the increased demand for the good.

The Demand for Labor Is Likely to Increase When _____