Question: 1. List the factors that can shift a perfectly competitive firms labor demand curve. 2. Explain why the market demand curve is not the horizontal

1. List the factors that can shift a perfectly competitive firm’s labor demand curve.
2. Explain why the market demand curve is not the horizontal summation of the firms’ demand curves for labor.
3. List the determinants of the elasticity of demand for labor.
4. Draw the market labor supply curve.
5. Describe the substitution effect of an increase in the wage rate.
6. Describe the income effect of an increase in the wage rate.
7. Explain when an individual’s labor supply curve will be upward-sloping.
8. List the factors that can shift the market labor supply curve.
9. Graphically show labor market equilibrium.
10. Explain why wage rates differ between labor markets.
11. State marginal productivity theory’s prediction about factor payments.

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