Shifts and movements on S + D for labour Flashcards
1
Q
what causes a movement in both supply and demand for labour
A
the wage rate
2
Q
what happens if there is an increase in wage rate above equilibrium
A
there will be excess supply of labour because firms can’t pay everyones wages
3
Q
what shifts the supply curve of labour
A
change in population
changes in pay or substitute occupations
changes to barriers to entry for occupation
4
Q
what shifts the demand curve of labour
A
changes in consumer demand
changes in labour productivity
change in government funding or employment schemes
monoposony power
5
Q
what cause movements on demand curve of labour
A
change in wage rate
