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Demand for labour

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Question 12

In a competitive labour market for specialized data analysts, what is the likely impact on the equilibrium wage rate and level of employment if there is a substantial increase in the productivity (marginal physical product, MPPLMPP_LMPPL​) of these analysts, while the market price of their services remains unchanged?

Labour Market Diagram

Wage Rate: Decreases, Employment: Increases

Wage Rate: Decreases, Employment: Decreases

Wage Rate: Increases, Employment: Increases

Wage Rate: Increases, Employment: Decreases

Demand for labour Questions

  1. A Level
  2. /Economics
  3. /Demand for labour