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Economics help on test review?

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Economics help on test review?

Postby hardin » Thu Dec 15, 2011 2:06 pm

Hi, Idk the answer to this question. I think it is D, but I'm not sure, and would like a second opinion thanks.

Question: "The labor demand curve:"

A. shifts out when wages fall.
B. shifts in when wages rise.
C. slopes up because of the law of demand.
D. slopes down because of the law of demand.
hardin
 
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Economics help on test review?

Postby celeste » Thu Dec 15, 2011 2:14 pm

D slopes down because of the law of demand

Wages increasing or decreasing doesn't make the demand curve shift, in these cases you will only be moving along the current demand curve

Rarely do demand curves ever slope up, so C is wrong

Remember demand, the lower the price (Y-axis) the more people are going to buy it
celeste
 
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