Q. What will happen if labour productivity is increased?
✅ Correct Answer: (C)
Labour demand curve will shift towards right
Explanation: If there is low marginal labour production,
then after giving wages there will be profit from marginal labourer. Ultimately, demand of labour will increase and labour demand curve will shift towards right.
then after giving wages there will be profit from marginal labourer. Ultimately, demand of labour will increase and labour demand curve will shift towards right.
Explanation by: Rakesh Yadav
If there is low marginal labour production,
then after giving wages there will be profit from marginal labourer. Ultimately, demand of labour will increase and labour demand curve will shift towards right.
then after giving wages there will be profit from marginal labourer. Ultimately, demand of labour will increase and labour demand curve will shift towards right.