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Which of the following will increase the demand for labou...

Which of the following will increase the demand for labour?

A.

Increase wage rate

B.

Labour's demand for output

C.

Low wage rate

D.

Low marginal productivity

Correct answer is C

Factors that can shift the demand curve for labour include: a change in the quantity demanded of the product that the labour produces; a change in the production process that uses more or less labour; and a change in government policy that affects the quantity of labour that firms wish to hire at a given wage. When the payment for labour is low, fills will be willing to employ more people than with an increased wage rate.