[Economics] Which of the following can bring about an increase in the demand for labor?

Question

Please help me out with my hw!

Which of the following can bring about an increase in the demand for labor?

A. an increase in the demand for the product that labor produces

B. an increase in the marginal physical product of labor

C. a decrease in the price of labor (a decrease in the wage rate)

D. a and b

E. a, b, and c

Thanks a lot!

66

Answer 1

D. a and b

but "C" will mean change is supply of labor, thus will bring increase in QUANTITY demanded of labor (without shifting labor-demand function).

Answer 2

D   How about reading your home work.  I'll help with this one.

If you have an increase in demand for a product and try and fill that demand you will need more labor. That's A.

If it takes more labor to make the product, for what ever reason, like a machine breakdown, or you needed a increase in quality, you need more labor. That's B

C, just because labor rates go down you don't hire more labor. That only increases your cost, and makes you less competitive.  It narrows your profit margin and your stock holders will fire you.

So since it's A & B the answer is D.