Question

If the salaries of accountants increase and other conditions remain the same, then

A. A firm will move to the left along its labor demand curve for accountants.
B. A firm will move to the right along its labor demand curve for accountants.
C. The labor demand curve for accountants will shift to the left.
D. The labor demand curve for accountants will shift to the right.

Answer 1

A

Step-by-step explanation:

An increase in the salary of accountants would increase the cost of hiring accountants. As a result, the quantity demanded of accountants would reduce. As a result, there would be a leftward shift along the demand curve.

Other factors other than salary would lead to a shift of the labour supply curve. e.g., technological advancement that makes accountants positions obsolete