If the market wage rate increases, a firm's labour demand curve does not shift, but the labour supply curve shifts to the right.

Question

Quizplus · Accepted Answer

If the market wage rate increases, the firm's labour demand curve may shift to the left, indicating a decrease in the amount of labour demanded at the higher wage rate. However, the slope and position of the supply curve will remain unchanged.

If the Market Wage Rate Increases, a Firm's Labour Demand