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Any event that changes the supply or demand for labor must change.
True
False

User DDR
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1 Answer

7 votes

Final answer:

Changes in salary lead to movement along the labor demand or labor supply curves, but not to their shift. Other events can cause the demand or supply of labor to shift instead.

Step-by-step explanation:

Changes in salary will lead to a movement along the labor demand or labor supply curves, but they will not shift those curves. However, there are other events that can cause either the demand or the supply of labor to shift, resulting in a new equilibrium salary and quantity in the labor market.

User Jernej K
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