6 Labor

• Labor Market


  A major component to every economy, and it is present in both the commodities and services markets. It consists of the supply and demand for labor.
• Labor Demand


  The amount of labor that employers wish to hire at a given time, illustrated by the labor demand curve.
• Labor Demand Curve


  • It shows the negative relationship between wage rate and labor quantity
  • When the wage rate is low, employers are encouraged to hire more workers
• Labor Supply


  Amount of labor offered for hire within a given period. Measured by the total number of hours workers are willing to work at a given wage rate.
• Labor Supply Curve


  • It shows the positive relationship between wage rate and labor quantity
  • When the wage rate is high, more people are willing to work
• Labor Market Equilibrium


  The point at which labor demand and labor supply converge and intersect
• Wages


  • Opportunity costs of engaging in leisure
  • Fewer people will work if the wage rate is low
• The 6 labor and wage