Which of the following statements describes the supply or demand curves for labor?(1 point)

Question

Responses

Businesses generally demand a higher quantity of labor as wages increase.
Businesses generally demand a higher quantity of labor as wages increase.

The graph of the supply curve for labor decreases going from left to right.
The graph of the supply curve for labor decreases going from left to right.

Businesses generally demand a higher quantity of labor as wages decrease.

Answer 1

The correct statement describing the supply or demand curves for labor is:

Businesses generally demand a higher quantity of labor as wages decrease.

This reflects the law of demand, which states that when the price (in this case, wages) falls, the quantity demanded (labor) increases. Conversely, as wages increase, the quantity of labor demanded typically decreases.

The other statements are incorrect:

• Businesses do not generally demand a higher quantity of labor as wages increase; they typically demand less.
• The supply curve for labor generally slopes upward from left to right, indicating that as wages increase, more individuals are willing to supply their labor.