Which of the following statements is correct?
A)An increase in the supply of other factors, such as capital, will increase the demand for labor.
B)Labor-saving technology will increase the demand for labor.
C)Labor-augmenting technology will decrease the demand for labor.
D)A decrease in the price of output will increase the demand for labor.

Question

Quizplus · Accepted Answer

An increase in the supply of other factors, such as capital, can increase the demand for labor because more capital allows for more production, which often requires more labor. This is based on the principle of complementary inputs where an increase in one input (like capital) can lead to an increased demand for another input (like labor) if they are used together in production.

Which of the Following Statements Is Correct