Consider a perfectly competitive labour market for video-game designers.Which of the following will shift the demand curve for these workers to the right?
1)an increase in the equilibrium wage rate for video-game designers;
2)a decrease in the market price of video games;
3)new software that improves the design process.
A)1 only
B)2 only
C)3 only
D)1 and 2
E)2 and 3

Question

Quizplus · Accepted Answer

Option 1 - an increase in equilibrium wage rate for video-game designers - does not shift the demand curve. Instead, it leads to movement along the existing demand curve as firms reduce their demand for video-game designers due to the higher wage rate. 
Option 2 - a decrease in the market price of video games - will shift the demand for video-game designers to the left (not right). This is because firms' revenue will decrease due to the lower price of video games, leading to a reduced demand for video-game designers.
Option 3 - new software that improves the design process - will shift the demand for video-game designers to the right. The new software makes the design process more efficient and effective, leading to higher demand for video-game designers who can operate the software.

Consider a Perfectly Competitive Labour Market for Video-Game Designers