Refer to Figure 18-6. Which of the following events would most likely explain a shift of the labor demand curve from D₂ back to D₁?

A) The price of automobiles decreased.
B) A large number of immigrants entered the automobile-worker market.
C) A technological advance increased the marginal product of automobile workers.
D) The demand for automobiles increased.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by employers and the wage rate.

Automobiles

The term for motor vehicles, typically with four wheels, designed primarily for passenger transportation on roads.

Technological Advance

Innovations and improvements in technology that increase productivity and efficiency in production or services.