Because firms are willing to hire additional workers at lower wages,the market labor demand curve is
A)Vertical.
B)Perfectly elastic.
C)Downward-sloping.
D)Upward-sloping.

Question

Quizplus · Accepted Answer

The fact that firms are willing to hire additional workers at lower wages indicates that the labor demand curve is downward-sloping. This is because as wages decrease, the cost of hiring additional workers decreases, making it more profitable for firms to hire more workers. Therefore, the demand for labor increases as wages decrease, resulting in a downward-sloping labor demand curve.

Because Firms Are Willing to Hire Additional Workers at Lower