📚 Learning Guide
Understanding Labor Demand Shifts
easy

Which of the following factors is most likely to cause a shift in the labor demand curve to the right?

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Choose the Best Answer

A

Increase in technology that enhances productivity

B

Decrease in consumer demand for goods

C

Increase in minimum wage

D

Increase in the number of workers available

Understanding the Answer

Let's break down why this is correct

Answer

A shift in the labor demand curve to the right means that employers want to hire more workers at every wage level. One main factor that can cause this shift is an increase in the demand for goods or services produced by a business. For example, if a bakery becomes very popular and sells more bread, it will need to hire additional bakers and staff to keep up with the increased orders. This higher demand for bread leads the bakery to need more labor, shifting the labor demand curve to the right. Overall, when businesses expect to sell more, they are willing to hire more workers, which increases labor demand.

Detailed Explanation

When technology improves, workers can produce more in less time. Other options are incorrect because Some might think that less demand for goods means more workers are needed; It may seem that raising the minimum wage would create more jobs.

Key Concepts

labor demand
Topic

Understanding Labor Demand Shifts

Difficulty

easy level question

Cognitive Level

understand

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