Demand For Labour Flashcards
1
Q
What are some factors that influence demand for labour?
A
Wage rate
Price for other workers
New technology
Increased efficiency
Demand for a product
2
Q
What is derived demand for labour?
A
It is the demand for a factor of production used to produce another good or service
When the economy is growing strongly, many businesses will be looking to hire extra workers
3
Q
What is the elasticity of demand for labour?
A
Labour costs as % of total costs
Ease and cost of factor substitution
PED for the final product
Time period
