The quantity of labor demanded by an employer typically depends upon the wage that labor is paid.

Question

Quizplus · Accepted Answer

This statement is true because employers will only hire as much labor as they can afford at a given wage. If the wage is high, the amount of labor demanded will likely be lower because the employer cannot afford to pay as many workers. Conversely, if the wage is low, the amount of labor demanded will likely be higher because the employer can afford to pay more workers at that wage level.

The Quantity of Labor Demanded by an Employer Typically Depends