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 (the price of labour) will result in a decrease in the demand for labour, as firms will be less willing to hire workers at higher wages. Therefore, it will not cause the labour demand curve to shift to the right. On the other hand, A, B, and C will increase the demand for labour through various mechanisms such as increased demand for the firm's product, greater output efficiency, and higher skills and productivity of the labour force.

Which of the Following Will Not Cause the Labour Demand