CAIE A-Level Economics 8.3.2 Labour Demand Determinants

Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise explaining derived labour demand through final-product demand, productivity, wages, capital substitution and labour's cost share, then predicting curve elasticity and…

How this is tested

shift labour demand right when product demand, worker productivity or output price rises
shift labour demand left when subsidised capital substitutes for workers in production
explain inelastic labour demand through inelastic product demand or a small labour-cost share

[Maximum number: 1]

There has been an increase in labour productivity.

Which combination of effects is most likely?

shift of demand
curve for labour

shift of supply
curve for labour

effect on wage rate

none

inward

increase

none

outward

decrease

inward

none

increase

outward

none

increase

How this is tested

Question 9