An increase in the real wage would result in a
A)movement along the labour demand curve,causing an increase in the number of workers hired by the firm.
B)shift of the labour demand curve,causing an increase in the number of workers hired by the firm.
C)movement along the labour demand curve,causing a decrease in the number of workers hired by the firm.
D)shift of the labour demand curve,causing a decrease in the number of workers hired by the firm.

Question

Quizplus · Accepted Answer

An increase in the real wage makes labor more expensive, leading firms to hire fewer workers, resulting in a movement along the labor demand curve.

An Increase in the Real Wage Would Result in a