New technology in the form of computer spreadsheets has increased the productivity of accountants. This will cause ?
Correct answer: A. the demand curve for accountants to shift to the right, since the productivity of accountants has increased
- A. the demand curve for accountants to shift to the right, since the productivity of accountants has increased
- B. firms to move up their demand curves for accountants
- C. the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.
- D. firms to move down their demand curves for accountants
Explanation
Higher accountant productivity increases the revenue produced by each accountant, so firms demand more accountants at each wage. This shifts the labour-demand curve to the right rather than causing movement along it.
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