Multiple Choice
What happens in the market for blenders if consumers decide that juicing their vegetables is better than blending their vegetables?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following results in a rightward shift of the market demand curve for labor?
A
A decrease in the productivity of labor
B
A decrease in the price of substitute inputs
C
An increase in the demand for the final good produced by labor
D
A decrease in the number of firms in the market
Verified step by step guidance1
Understand that the market demand curve for labor shows the relationship between the wage rate and the quantity of labor demanded by firms.
Recall that a rightward shift in the labor demand curve means that at every wage, firms want to hire more labor than before.
Analyze how changes in related factors affect labor demand: an increase in the demand for the final good produced by labor raises the marginal revenue product of labor, causing firms to hire more labor at each wage, shifting the demand curve rightward.
Recognize that a decrease in labor productivity or a decrease in the price of substitute inputs would typically reduce labor demand or shift it leftward, not rightward.
Note that a decrease in the number of firms in the market reduces overall labor demand, shifting the curve leftward, so it does not cause a rightward shift.
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