Which of the following would decrease the demand for labor?

Question

Quizplus · Accepted Answer

(i) An increase in the minimum wage will make hiring workers more expensive, which will in turn decrease the demand for labor.
(ii) A decrease in the price of a firm's output (decrease in demand for product) will result in lower revenue, which will make it less profitable to hire workers, thereby decreasing the demand for labor.
(iii) An increase in the productivity of labor will increase the output per worker, making it more profitable to hire workers, therefore increasing the demand for labor.
(iv) An increase in the cost of capital can make firms shift to more capital-intensive production methods, which will decrease the demand for labor.

Which of the Following Would Decrease the Demand for Labor