Use the Accompanying Graph, Which Depicts Mighty Max's Labor Demand

question 85

Multiple Choice

Use the accompanying graph, which depicts Mighty Max's labor demand for his duffle-bag business, to answer the questions that follow.

-The labor demand curve shown is calculated based on a duffel-bag price of $10.If the price increases to $20 per bag,what happens to the labor demand curve?

• A) It shifts to the left.
• B) It shifts to the right.
• C) It remains unchanged.
• D) The firm moves upward along the labor demand curve.
• E) The firm moves downward along the labor demand curve.

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