What does requirement do to the demand curve for labor


Assignment Task: Suppose car manufacturers can use both workers or machines to attach the wheels to a new car.

Suppose the Occupational Safety and Health Administration mandates that the machines used to attach wheels to cars be fitted with a very expensive device to prevent injuries to workers. This device does not improve the efficiency with which the machines operate.

What does this requirement do to the demand curve for labor? Explain your answer by discussing both the scale and substitution effects.

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Microeconomics: What does requirement do to the demand curve for labor
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