-The above figure shows the initial demand for labor curve at a Pizza Hut in Canada.The wage rate is $6 an hour.If the demand for pizzas increases so that the price of a pizza rises,
A) at the wage rate of $6 per hour, Pizza Hut hires fewer than 10 workers.
B) Pizza Hut's demand for labor curve shifts rightward.
C) the supply of labor curve shifts rightward.
D) Pizza Hut's demand for labor curve shifts leftward.
E) the supply of labor curve shifts leftward.

Question

-The above figure shows the initial demand for labor curve at a Pizza Hut in Canada.The wage rate is $6 an hour.If the demand for pizzas increases so that the price of a pizza rises,
A) at the wage rate of $6 per hour, Pizza Hut hires fewer than 10 workers. 
B) Pizza Hut's demand for labor curve shifts rightward. 
C) the supply of labor curve shifts rightward. 
D) Pizza Hut's demand for labor curve shifts leftward. 
E) the supply of labor curve shifts leftward.

Quizplus · Accepted Answer

When the demand for pizzas increases, leading to a higher price per pizza, Pizza Hut's revenue per worker increases. This makes hiring additional workers more profitable at the existing wage rate, shifting the demand for labor curve to the right.

-The Above Figure Shows the Initial Demand for Labor Curve