Intersection of demand and supply of labor

Assignment Help Financial Accounting

Reference no: EM133208480

The wage rate and employment are determined by the intersection of demand and supply of labor.

Two things that can change the demand for labor are, (1) the amount or price of a produced good (if the prices rise it leads to an increase in labor, and if the price falls it leads to a decrease in demand for labor). The demand for labor changes when the price of the good being produced changes because it directly affects the marginal revenue product of labor. (2) Changes in the productivity of labor (more productive workers will cause an increase in demand for labor, if workers are less productive it'll cause a decrease in demand for labor)

Changes in the supply of labor, two things to mention are (1) changes in wage rate within competing markets then the supply of labor will change. (If rival industries offer higher wages it will cause a decrease in the supply of labor and if they offer lower wages will lead to an increase in the supply of labor. (2) They are barriers to entering the market (permits, licenses, etc.) and population growth.

Reference no: EM133208480

Questions Cloud

Why has strategic management become so important : Why has strategic management become so important to today's corporations and how does it typically evolve in a corporation

The Smartest Guys in the Room : Share your knowledge and/or perspective on the movie's plot/themes - what did you learn from watching the film?

Production employee entered materials requisition : A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom.

Calculate the payback period, irr, mirr, npv : Calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive projects. The required rate of return is 15%

Intersection of demand and supply of labor : The wage rate and employment are determined by the intersection of demand and supply of labor.

Describe the mechanism of action of black widow : Describe the mechanism of action of black widow spider venom. You should describe the symptoms of poisoning but also make sure you describe in detail

Design and implementation of internal controls : Provide how discrepancies between the design and the implementation of internal controls may occur within any given company.

Describe the hormonal mechanism : Describe the hormonal mechanism that worked to maintain Brandon's blood volume and blood pressure during his marathon.

Explain changes occurring to his autonomic nervous system : Explain the changes occurring to his autonomic nervous system while running to catch the bus and after he sat down on the bus. Explain how these changes

User Account

All Pages