6. Refer to the above graph. What will shift D 2 to D 1 ? An increase in product
ID: 1118404 • Letter: 6
Question
6. Refer to the above graph. What will shift D2 to D1?
An increase in productivity
A decrease in product demand
A decrease in the price of complementary input
An increase in the price of a substitute input (if the substitution effect is greater than the output effect)
An increase in productivity
A decrease in product demand
A decrease in the price of complementary input
An increase in the price of a substitute input (if the substitution effect is greater than the output effect)
2 0 Quantity of LaborExplanation / Answer
Answer
A decrease in product demand
the decrease in product demand decreases demand for labor and that will shift the demand curve to the left which decreases wage and quantity of labor.