Explain how labor market equilibrium is affected by the supply and demand of labor.© BrainMass Inc. brainmass.com March 4, 2021, 10:12 pm ad1c9bdddf
Labor market equilibrium is constantly being affected by the supply and demand of labor. The supply of labor will shift the supply curve outward. This will result in an increase in equilibrium quantity and a decrease in equilibrium price. The increase in supply of labor can be caused by a number of reasons. Currently, there is an increase in labor supply because of record high unemployment rate. The high unemployment rate is causing a lot of people to ...
This solution discusses how the demand and supply of labor affects the market equilibrium for labor in 312 words.