Which of the following will lead to an increase in the firm's short-run demand for labor?

Question

Quizplus · Accepted Answer

An improvement in labor productivity will lead to an increase in the firm's short-run demand for labor as it will increase the efficiency of workers and lead to increased output. A decrease in the price of the final product (A) will likely lead to a decrease in the demand for labor as the firm faces lower revenue and profit margins. An increase in the price of the final product's substitute good (B) may or may not affect the demand for labor, as it depends on the specific market conditions and elasticity of demand for the firm's product. A decrease in the number of buyers for the final product (D) will lead to a decrease in the firm's demand for labor as it faces lower demand for its product and thus needs fewer workers to produce it.

Which of the Following Will Lead to an Increase in the Firm's