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Romashka-Z-Leto [24]
1 year ago
9

When the labor demand curve s downward-sloping, an increase in the minimum wage is:________

Social Studies
1 answer:
nydimaria [60]1 year ago
7 0

When the labor demand curve s downward-sloping, an increase in the minimum wage is beneficial.

Why labor demand curve is downward sloping?

  • Because of the law of diminishing returns, the demand curve is downward sloping.
  • when more workers are hired, the marginal product of labor starts to decline, which causes the marginal revenue product of labor to fall as well.

How does an increase in the minimum wage affect demand?

  • The quantity of work required will alter in response to changes in pay or salary.
  • Employers will want to hire fewer workers if the pay rate rises.
  • There will be a reduction in the amount of labor requested and an upward shift in the demand curve.

Learn more about  demand curve

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