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Figure 18-8 This Figure Below Shows the Labor Market for Automobile Workers

Question 85

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Figure 18-8
This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. Figure 18-8 This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D<sub>1</sub> and D<sub>2</sub> are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market.   -Refer to Figure 18-8. Which of the following events would most likely explain a shift of the labor-demand curve from D<sub>2</sub> back to D<sub>1</sub>? A) The price of automobiles decreased. B) A large number of immigrants entered the automobile-worker market. C) A technological advance increased the marginal product of automobile workers. D) The demand for automobiles increased.
-Refer to Figure 18-8. Which of the following events would most likely explain a shift of the labor-demand curve from D2 back to D1?


A) The price of automobiles decreased.
B) A large number of immigrants entered the automobile-worker market.
C) A technological advance increased the marginal product of automobile workers.
D) The demand for automobiles increased.

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