Just as we added all individual demand curves to find aggregate demand in the goods and services mar

Just as we added all individual demand curves to find aggregate demand in the goods and services mar

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Just as we added all individual demand curves to find aggregate demand in the goods  and services market, we use horizontal addition to add together all individual demand  curves for labor to find the aggregate demand for labor. If you have equations  representing different labor demand curves, simply add them together to find the new,  aggregate demand. Graphically, add the quantities demanded at each wage level to  generate a new labor demand curve. You can see how this is done in the Supply and  Demand SparkNote.  Equilibrium in Labor Markets  Once you have generated aggregate supply and demand curves for labor, finding the  market equilibrium, as with the goods and services market, is simply a matter of finding  the intersection of the two curves (unless there is an artificial restriction on the market,  such as a minimum wage). Let us consider two cases: an unrestricted labor market with 
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This note was uploaded on 12/13/2011 for the course ECO 1320 taught by Professor Staff during the Fall '11 term at Texas State.

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Just as we added all individual demand curves to find aggregate demand in the goods and services mar

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