List four shift factors of demand and their effect on demand.
a. Shifts in demand for the good. An increase in the demand for a good shifts the demand for labor to the right.
b. The development of new technology. The effect is ambiguous. Other things equal, the demand for workers who do not know the technology will shift to the left. Other things are often not equal. To the extent that the new technology requires building new machinery or leads to great consumer demand, labor demand might increase.
c. The elasticity of demand. The more elastic the demand, the more the demand curve for labor will shift to the right.
d. The type and prevalence of unions. Unions shift the demand for labor curve to the right. e/The cost of competing factors of production. A rise in the cost of competing factors shifts the demand for labor to the right.
f. Market structure. The more the market is monopolistic, the lower the demand for labor. k/The wage rate. A rise in the wage rate shifts the demand for labor to the right.