LABOUR MKT - Labour Demand Curve Shifts

Question 1

other than wage, factors affecting demand for labour do what to the labour demand graph

Answer 1

shift labour D curve left or right

Question 2

acronmy for shifters of demand curve

Answer 2

P - price
D- demand
P - productivity
C - capital

Question 3

What does P stand for

Answer 3

CHANGE IN FINAL PRICE OF PRODUCT LABOUR IS MAKING

Question 4

if price of product labour making changes what does this affect

Answer 4

MRP

Question 5

Why does the change in price affect MRP

Answer 5

MRP = MR X MPP

MR = PRICE

Question 6

if price of product changes what changes to

Answer 6

MR

Question 7

Ceteris paribus what happens if price of product increase s

Answer 7

MRP of worker increases so D Ccurve shifts right 9higher MRP attracts firms ?)

Question 8

what does D stand for

Answer 8

CHANGE IN DEMAND FOR FINAL PRODUCT

Question 9

what happens if demand for final product increases

Answer 9

demand for labour increases

Question 10

If demand for final product increases why does demand for labour increase

Answer 10

labours a derived demand

Question 11

What does P stand for

Answer 11

CHANGES IN LABOUR PRODUCTIVITY

Question 12

What does labour productivity affect

Answer 12

MPP of labour

Question 13

labour productivity affcets MPP of labour - if this increases what does this affect

Answer 13

MRP (increases)

Question 14

if there is an increase in labour productivity explain what happens

Answer 14

increases MRP

Shifting demand curve right

Question 15

What does C stand for

Answer 15

CHANGES IN PRICE OF CAPITAL

Question 16

In the LR all FOP are

Answer 16

variable

Question 17

in the LR firms have a big descision to make whihc is …

Answer 17

hire more workers or capital as the two are substitutable

Question 18

if price of capital decreases what happens to the demand for labour and why

Answer 18

decreases

as cap and labour are substitutable

Question 19

explain what happens to the demand curve for labour when price of capital goes down

Answer 19

price of capital decreasing means its cheaper for firms to use machinery as long as the capital machinery is subsitiutable for labour so D for labour shifts left

Question 20

explan what happens to demand curve for labour when price of capital increase - rember talk about substitutes

Answer 20

price of substitute has gone up

so demand labour increases

shifting demand curve right

as firms look to hire more workers as opposed to more expensive capital

Question 21

demand curve for labour shifts left or right if changes taking place are

Answer 21

irrespective of wage