If the price of the firm's output increases,the demand for labor curve
A) shifts rightward.
B) shifts leftward.
C) remains constant.
D) could shift rightward, leftward, or remain constant.
E) might shift leftward or rightward depending on whether the demand for the firm's product is elastic or inelastic.

Question

Quizplus · Accepted Answer

If the price of the firm's output increases, the firm will be able to generate more revenue, which increases its ability to hire more labor. Therefore, the demand for labor curve will shift rightward as the firm would demand more labor to produce more output.

If the Price of the Firm's Output Increases,the Demand for Labor