Essay about A Brief Note On Economics And The Labor Market
There are many different aspects in economics. Some are good, some bad, and some confusing. Economics is social science that seeks to describe the factors which determine the production, distribution and consumption of goods and services. One of the services to consider is the supply and demand of labor market, wages, and income inequality.
Labor market and wages can be defined in two steps. Step one: What is market wages? Market wages is the price determined by the labor market. Step two: What is a labor market? A labor market is the supply of available workers in relation to available work. When dealing with the labor market you tend to deal with supply and demand. Demand and supply in labor market is similar to demand and supply dealing with goods. It is stated that the law of demand applies to the labor markets in a few different ways. First is a higher wage or salary (which means a higher price in the labor market) will lead to a decrease in the quantity of labor that the employees must give. On the other hand, a lower wage can lead to an increase in the amount of employees needed, or how much the given employees need to work. Having a higher price for labor will affect the quantity of labor supplied. Knowing that the amount of labor demanded affect the amount of labor supplied; look at this supply and demand graph to get a better understanding.
To better understand this graph you need to know how that shifts from within supply and…