Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D 1 and D 2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. -Refer to Figure 18-8. Which of the following events would most likely explain the shift of the labor-demand curve from D₁ to D₂? A)The price of automobiles decreased. B)A large number of immigrants entered the automobile-worker market. C)A technological advance increased the marginal product of automobile workers. D)All of the above are correct.

Question

Quizplus · Accepted Answer

A technological advance that increases the marginal product of automobile workers would increase the demand for labor in the industry, shifting the labor-demand curve to the right from D₁ to D₂. A decrease in the price of automobiles or an influx of immigrants would not directly affect the demand for labor in the automobile industry.

Figure 18-8 This Figure Below Shows the Labor Market for Automobile Workers