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What effect will each of the following have on the market labor demand for specific type of labor? a, an increase in product demand that increases product price.
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B, a decline in the productivity of this type of labor.
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C, an increase in the price of gross substitute for labor.
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D, a decline in the price of a gross complement for labor.
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E, the demise of several firms that hire this labor.
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F, a decline in the market wage for this labor.
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And g, a series of mergers that transforms the product market into a monopoly.
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A, labor demand will increase.
00:37
If demand for the product is more, the firm will expand and manufacture more products leading to an increase in demand for labor.
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B, labor demand will increase.
00:48
If the productivity of workers decreased and the firm wants to maintain production targets, it would require more workers leading to an increase in demand for labor.
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C, labor demand will increase.
01:00
Substitute for labor means the alternative, such as machinery, can replace the laborer's job...