When the demand for labour rises, _____, all else being held constant.
a. wages increase
b. wages decrease
c. supply increases
d. supply decreases
The Labor Demand:
Just in the market analysis for goods and services, the labor the labor market involves the demand and the supply for labor. In order for a firm to produce output, the firm needs labor. The labor demand is the number of labor hours that a firm or an employer is willing to employ at different wage rates. Thus, the wage rate is the price of labor. Firms demand labor depending on the amount of output it produces. If a firm wants to produce more output, it hires more labor and when the firm cuts down its production, it lays off some labor.
Answer and Explanation: 1
The correct answer is: a. wages increase
Various factors affect the demand for labor. For example, changes in technology. Changes in technology...
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fromChapter 7 / Lesson 4
Learn about the labor supply and demand curves in economics. Explore the labor supply and demand curve shifts, and study the factors that impact both curves.