Shifts In The Labour Demand Curve

Question 1

What are the shifts in the labour demand curve?

Answer 1

Changes in final price of the product that labour is making
Changes in demand for the final product
Changes in labour productivity
Changes in the price of capital

Question 2

How can a change in the final price of the product that labour is making affect demand?

Answer 2

If the price of the product changes it going to effect MRP.

If the price of the product goes up, then the MRP of worker is going to increase, then the demand curve shifts to the right.

Question 3

How can a change in demand for the final product changes how is it going to effect demand?

Answer 3

If demand for the final product increases, demand for labour increases.

Question 4

How is a change in labour productivity going to affect demand?

Answer 4

A change in productivity affects the MP of labour.
MP increases and therefore affects MRP.

Increase in labour productivity will increases MRP and then shift the demand curve to the right

Question 5

How can a change in a price of capital affect demand?