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Question
Macroeconomics
Posted 4 months ago

This graph illustrates the market for labor that is used to produce board games.

Which of the following would cause the change shown here?
Choose 1 answer:
A) The demand for board games decreases.
(B) Large portions of the population retire
(C) There is an increase in unskilled labor in this market
(D) Worker productivity increases.
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Answer from Sia
Posted 4 months ago
Solution
a
Shift in Demand Curve: A leftward shift in the demand curve for labor indicates a decrease in the demand for labor at every wage level
b
Possible Causes: The shift could be due to a decrease in the demand for the final product, changes in the retirement age affecting the number of active workers, an increase in the availability of labor, or changes in productivity
c
Analyzing Options: We need to determine which option would cause a decrease in the demand for labor, not an increase in supply or a change in labor productivity
d
Option Analysis: - (A) A decrease in the demand for board games would reduce the need for labor to produce them, shifting the demand curve leftward. - (B) Retirement affects the supply of labor, not the demand. - (C) An increase in unskilled labor would shift the supply curve, not the demand curve for labor. - (D) An increase in worker productivity typically shifts the demand curve for labor to the right, as each worker is more valuable
Answer
A) The demand for board games decreases.
Key Concept
Demand Curve Shift in Labor Market
Explanation
A decrease in the demand for the final product (board games) leads to a decrease in the demand for labor used in its production, causing the demand curve for labor to shift leftward.

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