Which of the following will NOT lead to a change in the demand for labor?

Question

Quizplus · Accepted Answer

Changes in the supply of labor affect the wage rate, but not the demand for labor. A change in the demand for the final good affects the demand for labor because it changes the quantity demanded of the good, which in turn changes the quantity of labor needed to produce it. A change in the price of a substitute input affects the relative cost of using labor, and therefore affects the demand for labor. A change in labor productivity affects the marginal product of labor, which in turn affects the demand for labor.

Which of the Following Will NOT Lead to a Change