Week 3 team assignment

Week 3 team assignment - work benefits. The demand of labor...

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Supply and demand Labor affects labor market equilibrium by the responsibility it has for determining equilibrium wage in labor markets. Wages are basic compensation for paid labor. Per period of time of the compensation of labor is called wage rate. The equilibrium wage is the wage rate that produces either an excess supply of workers or an excess demand for workers and labor market. When supply of labor changes of the equilibrium point, it is depending on the amount of workers ability, willingness, and qualification to work at any given position. The supply of labor also determine by the choice between income and leisure. When labor supply curves shift with things, it increases in working population and decrease in non-
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Unformatted text preview: work benefits. The demand of labor are when companies who are demanding jobs and if not, that area most likely would have a low count of workers who have the ability, willingness, and qualification. The demand for an additional amount of labor depends on the MRP (marginal revenue product) and MC (marginal cost) of the worker. Labor demand curves shift with changes in productivity. Another demand of labor shift is that the change in income taxes or a family having another addition member. LaFaive, Michael D. (2001). Supply and Demand and the Labor Market. Retrieved from http://www.mackinac.org/3818...
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