📈Labor demand is a derived demand, influenced by the need to produce goods and services.
💼Demand curves show the relationship between the price and quantity demanded of labor.
💰Firms hire labor up to the point where the marginal revenue product of labor is equal to the wage.
🔄Changes in output price and demand can shift the labor demand curve.
⚙️Technology improvements can also impact labor demand by increasing workers' productivity.
What is labor demand?
—Labor demand is the amount of labor that firms are looking to hire. It is determined by the need to produce goods and services.
What factors influence labor demand?
—The factors that influence labor demand include the price and demand for a firm's output, as well as improvements in technology.
How is labor demand represented graphically?
—Labor demand is represented graphically by a demand curve, which shows the relationship between the price and quantity demanded of labor.
What is the principle behind hiring decisions in competitive labor markets?
—In competitive labor markets, firms hire labor up to the point where the marginal revenue product of labor is equal to the wage.
How can the labor demand curve shift?
—The labor demand curve can shift due to changes in output price and demand, as well as technology improvements that increase workers' productivity.
00:00Labor demand is the amount of labor that firms are looking to hire, determined by the need to produce goods and services.
00:24Demand curves represent the relationship between the price and quantity demanded of labor.
01:09Firms hire labor up to the point where the marginal revenue product of labor is equal to the wage.
02:07Changes in output price and demand can shift the labor demand curve.
02:36Technology improvements can also impact labor demand by increasing workers' productivity.
