Answer to Question #225056 in Microeconomics for richman

Question

Describe and give some explanations about 2 factors that would cause most companies' labor demand to move, as well as how this would influence equilibrium wages and the value of labor's marginal product.

Answer 1

1) When the quantity demanded changes, the labor demand will shift such that when the quantity demanded increases the labor will also increase. ; 2) when the production process changes, this may call for less or more labor. For instance, technological procedures lead to less labor.