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Demand of labor

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Why is the demand of labor a derived demand? Explain the shape of the supply of labor curve. What is the relationship between productivity and the wages earned by an employee? What are some factors that determine the level of your income?

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Demand of labor

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Demand for labour is a derived demand because the demand for labour is a result of demand for other things (such as goods and services). Nobody would demand labour alone, instead, people demand for goods, the in the production of goods, labour is then demanded (hence it is a derived good).

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