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An increase in the wage rate causes Group of answer choices a decrease in the quantity of labor demanded. an increase in labor's marginal productivity. a leftward shift of the firm's labor demand curve.
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An increase in the wage rate causes Group of answer choices a decrease in the quantity of labor demanded. an increase in labor's marginal productivity. a leftward shift of the firm's labor demand curve. a rightward shift of the firm's labor demand curve.

User Sagar M
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12 votes
12 votes

Answer:

a decrease in the quantity of labour demanded.

Step-by-step explanation:

Changes in wage rate leads to changes in the quantity of labour demanded and not a change in demand.

Changes in the quantity of labour demanded leads to a movement along the demand curve for labour and not a shift of the demand curve.

The quantity demanded of labour is inversely related to the wage rate.

An increase in the wage rate increases the cost of employing labour. As a result, the quantity demanded of labour falls

On the other hand, a decrease in the wage rate reduces the cost of employing labour. As a result, the quantity demanded of labour increases

User Wim Haanstra
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