which of the following statements describes the supply or demand curves for labor?
a. businesses generally demand a higher quantity of labor as wages decrease
b. the graph of the supply curve for labor decreases going from left to right
c. businesses generally demand a higher quantity of labor as wages increase
d. the graph of the supply curve for labor increases going from left to right
a. businesses generally demand a higher quantity of labor as wages decrease
d. the graph of the supply curve for labor increases going from left to right
The correct statement is c. businesses generally demand a higher quantity of labor as wages increase.
To determine which statement describes the supply or demand curves for labor, we need to understand the basic principles of supply and demand in the labor market.
Supply and demand in the labor market are influenced by the relationship between wages and the quantity of labor. When wages increase, the quantity of labor supplied tends to increase as more people are attracted to work due to higher potential earnings. On the other hand, when wages decrease, the quantity of labor supplied tends to decrease as people may be less willing to work for lower pay.
Similarly, when wages increase, businesses may demand a lower quantity of labor as the increased cost of hiring workers may lead to reducing the workforce or finding alternative solutions. Conversely, when wages decrease, businesses may demand a higher quantity of labor as they can hire more workers for less money.
Now let's analyze the statements:
a. "Businesses generally demand a higher quantity of labor as wages decrease." This statement accurately describes the relationship between the quantity of labor demanded and wage decrease. As explained earlier, businesses tend to demand more labor when wages are lower, making statement (a) correct.
b. "The graph of the supply curve for labor decreases going from left to right." This statement is incorrect. The supply curve for labor typically increases from left to right, indicating that as wages increase, the quantity of labor supplied also increases.
c. "Businesses generally demand a higher quantity of labor as wages increase." This statement is incorrect. Businesses generally demand a lower quantity of labor as wages increase, as higher wages increase labor costs.
d. "The graph of the supply curve for labor increases going from left to right." This statement is correct. The supply curve for labor increases from left to right, indicating that as wages increase, the quantity of labor supplied also increases.
In summary, the correct statement that describes the supply or demand curves for labor is:
a. Businesses generally demand a higher quantity of labor as wages decrease.