Markets for labor have demand and supply curves, just like markets for goods. The law of demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded. The law of supply functions in labor markets, too: A higher price for labor leads to a higher quantity of labor supplied; a lower price leads to a lower quantity supplied.
Demand and Supply at Work in Labor Markets
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- 1 -
- 2 - Equilibrium in the Labor Market
- 3 - Shifts in Labor Demand
- 4 - Shifts in Labor Supply
- 5 - Technology and Wage Inequality: The Four-Step Process
- 6 -
- 7 - Price Floors in the Labor Market: Living Wages and Minimum Wages
- 8 - The Minimum Wage as an Example of a Price Floor
- 9 - Concepts and Summary
- 10 - Self-Check Questions
- 11 - Review Questions
- 12 - Critical Thinking Questions
- 13 - Problems
- 14 - References
- View all as one page
1
of
14
- 1 -
- 2 - Equilibrium in the Labor Market
- 3 - Shifts in Labor Demand
- 4 - Shifts in Labor Supply
- 5 - Technology and Wage Inequality: The Four-Step Process
- 6 -
- 7 - Price Floors in the Labor Market: Living Wages and Minimum Wages
- 8 - The Minimum Wage as an Example of a Price Floor
- 9 - Concepts and Summary
- 10 - Self-Check Questions
- 11 - Review Questions
- 12 - Critical Thinking Questions
- 13 - Problems
- 14 - References
- View all as one page