Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Questions for Review - Page 391: 2

Answer

One event that could shift the demand curve for labor is a change in the price of a good. If the price of a good increases, then the value of the marginal product of each worker also increases. If the price of a good decreases, then the value of the marginal product of each worker also decreases.

Work Step by Step

Another event that could shift the demand curve for labor is technological change. If there is a technological advance, then the marginal product of labor also increases. This, in turn, increases the demand for labor.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

GradeSaver will pay $15 for your literature essays
GradeSaver will pay $25 for your college application essays
GradeSaver will pay $50 for your graduate school essays – Law, Business, or Medical
GradeSaver will pay $10 for your Community Note contributions
GradeSaver will pay $500 for your Textbook Answer contributions