![]() ![]() Therefore the demand for labor is called a “derived demand.”īack to : ECONOMIC ANALYSIS & MONETARY POLICYĪs the demand for the goods and services increases, the demand for labor will increase, or shift to the right, to meet employers’ production requirements. One key reason is that the demand for labor is based on the demand for the good or service that is produced. Shifts in the demand curve for labor occur for many reasons. The quantity of labor demanded will increase, resulting in a downward movement along the demand curve. ![]() If the wages and salaries decrease, employers are more likely to hire a greater number of workers. The quantity of labor demanded will decrease, and there will be a movement upward along the demand curve. If the wage rate increases, employers will want to hire fewer employees. The demand curve for labor shows the quantity of labor employers wish to hire at any given salary or wage rate, under the ceteris paribus assumption.Ī change in the wage or salary will result in a change in the quantity demanded of labor. What Causes Shifts in the Demand for Labor? ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |