Which of the following events will cause the labor demand curve to shift up and to the right?
A) a lower wage
B) an increase in product demand
C) an increase in the supply of labor
D) all of the above shift the labor demand curve up

Question

Quizplus · Accepted Answer

An increase in product demand will typically lead to an increase in labor demand, as firms will need to hire more workers to increase production and meet the higher demand for their products. A lower wage (choice A) would actually cause a movement along the labor demand curve rather than a shift, as firms would demand more labor at the lower wage but not necessarily at higher wages. An increase in the supply of labor (choice C) would actually shift the labor supply curve, not the demand curve. Therefore, only an increase in product demand would lead to a shift in the labor demand curve.

Which of the Following Events Will Cause the Labor Demand