Answer: Option (c) is correct.
Explanation:
This is correct because an increase in the wage rate will shift the market demand curve rightwards.
Firms demand for a labor up to a point where value of marginal product of labor is equal to the wage rate.
Value of marginal product = price × marginal productivity of labor
∴ price × marginal productivity of labor = wage rate ..........(1)
Equation (1) is the demand equation for labor
So, if there is an increase in the wage rate, as a result price of the product also increases. This raises the value of marginal product of labor and marginal productivity remains the same.
Hence, this shifts the demand curve for labor rightwards.
∴ Option (c) is correct.
The Shift in demand curve refers to change in demand by changing the other factors than own price of a commodity.
The leftward shift in demand curve for labor does not the result of an increase in the wage rate because it shifts towards right.
The shift in demand curve occurs due to change in the other factors, other than own price of a commodity, This means that there is no change in the demand curve due to change in the price of a commodity.
Example:
Change in the income, taste and preferences of consumers, change in the wage rates, etc., causes (leftward and rightward) shift in demand curve.
Therefore, increase in the wage rates is not result in leftward shift, it causes the rightward shift in demand curve.
To learn more about the shift in demand curve, refer to:
https://brainly.com/question/25701641
