What effect does an increase in the price of the firm's output have on its demand curve for labor? Why?
What will be an ideal response?
An increase in the price of its output shifts the labor demand curve rightward. This shift occurs because the value of the additional output produced by each unit of labor has become more valuable as a result of the price hike.
Economics
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Refer to Figure 15-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) a decrease in real GDP. B) an open market sale of Treasury securities by the Federal Reserve. C) an increase in the required reserve ratio by the Federal Reserve. D) an increase in the price level.
Economics
Due to free entry and exit in monopolistic competition, in the long run price must be equal to
Economics