Aggregate Demand Curve for Labor

Aggregate Demand Curve for Labor - Aggregate Demand Curve...

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Aggregate Demand Curve for Labor 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 shifts in the supply or demand curves, and a restricted market with a minimum wage.
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This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.

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