Overview
Demand and supply in labor markets are crucial concepts in economics that explain how wages and employment levels are determined. Labor demand refers to the number of workers employers want to hire, while labor supply is the number of workers willing to work. The interaction between these two forces...
Key Terms
Example: When a company expands, its labor demand increases.
Example: More graduates entering the job market increases labor supply.
Example: If 100 workers are needed and 100 are available, the equilibrium wage is reached.
Example: High unemployment can create a surplus of labor.
Example: A tech boom may create a shortage of skilled workers.
Example: Minimum wage laws aim to protect workers from low pay.
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advancedKey Concepts
Labor DemandLabor SupplyEquilibrium WageMarket Forces