Which of the following events could explain why wages and employment could fall in a competitive labor market?
A) The demand curve shifts right and up.
B) The demand curve shifts left and down.
C) The supply curve shifts left and up.
D) The supply curve shifts right and down.

Question

Quizplus · Accepted Answer

If the demand curve shifts left and down, it means that there is a decrease in demand for labor, resulting in lower wages and employment. This is because there are fewer job opportunities available, and employers can afford to pay lower wages to attract workers.

Which of the Following Events Could Explain Why Wages and Employment