Firms short-run demand for labor downward-sloping

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Recall that the Law of Demand states that demand curves are always downward-sloping. That is, people want to buy more of some good when its price is lower.

a. Why is a firm’s short-run demand for labor downward-sloping?

b. Is the firm’s long-run demand for labor necessarily downward-sloping? Explain, using the substitution and scale effects.

Reference no: EM13839821

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