Which of the following will NOT result in a leftward shift of the market demand curve for labor?

• A. A decrease in the productivity of workers
• B. A decrease in the demand for the final good
• C. An increase in the price of the product produced by labor
• D. The adoption of labor-saving technology

Answer: (C)

Verified step by step guidance

1. Step 1: Understand what causes a leftward shift in the market demand curve for labor. A leftward shift means that at every wage, firms want to hire fewer workers. This typically happens when the marginal productivity of labor decreases or when the demand for the product labor helps produce decreases.
2. Step 2: Analyze the effect of a decrease in the productivity of workers. Lower productivity means each worker produces less output, reducing the marginal product of labor, which decreases labor demand and shifts the demand curve leftward.
3. Step 3: Consider a decrease in the demand for the final good. If consumers want less of the product, firms will reduce production, lowering the demand for labor and causing a leftward shift in the labor demand curve.
4. Step 4: Evaluate the impact of an increase in the price of the product produced by labor. A higher product price increases the value of the marginal product of labor, making labor more valuable to firms. This tends to increase labor demand, shifting the demand curve rightward, not leftward.
5. Step 5: Examine the adoption of labor-saving technology. Such technology reduces the need for labor to produce the same output, decreasing labor demand and shifting the labor demand curve leftward.