Which of the following would decrease the demand for labor?
(i)a decrease in the output price
(ii)an increase in the output price
(iii)a labor-saving technological advance
(iv)a labor-augmenting technological advance
A)(i) only
B)(i) and (iii) only
C)(ii) only
D)(ii) and (iv) only

Question

Quizplus · Accepted Answer

A decrease in the output price reduces the revenue from selling goods, leading to lower demand for labor. A labor-saving technological advance reduces the need for labor, also decreasing demand.

Which of the Following Would Decrease the Demand for Labor