Refer to the Graph

question 166

Multiple Choice

Refer to the graph. Each of the three labor demand curves shown slopes downward because of the

• A)law of diminishing marginal utility.
• B)law of increasing opportunity costs.
• C)principal-agent problem.
• D)law of diminishing returns.

---

Definitions:

Demand Curve

A visual map indicating how consumer demand for a product varies with changes in its price.

Labor

The work performed by humans which is often measured in terms of hours or productivity and is a fundamental factor of production.

Market Wage

The prevailing pay rate for work of a given nature in a specific market or industry.

Labor Supply

The total hours that workers are willing and able to work in a given period, often influenced by factors like wages, working conditions, and social norms.