• Card 2 / 16: In the labor market, what causes a movement along the demand curve? What causes a shift in the demand curve?

    Answer:
    Changes in the wage rate (the price of labor) cause a movement along the demand curve. A change in anything else that affects demand for labor (e.g., changes in output, changes in the production process that use more or less labor, government regulation) causes a shift in the demand curve.

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Microeconomics 04 Labor & Financial Markets

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Attribution:  Microeconomics, OpenStax-CNX Web site. Download for free at http://cnx.org/content/col11613/latest
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