5.1 Demand for Labour Flashcards
1
Q
Causes of shifts in demand?
A
- Rise in consumer demand
- Change in price of product
- Increase in labour productivity
2
Q
What is derived demand for labour?
A
Demand for labour in order to produce a good or service
3
Q
Labour elasticity of demand depends on?
A
1) Labour as % of total costs
2) Ease of factor substitution
3) PED of final product
4) Time
4
Q
What is labour elasticity of demand?
A
How many workers a business is willing and able to hire at a given wage rate
(WED)
