Lab
The Labor Market Graph
Each graph shows one labor market: the wage on the vertical axis, the quantity of labor on the horizontal axis, labor demand from firms and labor supply from workers. Title both axes and name both curves first. Then decide which curve the situation moves and which way, move it, and drag the round point to the new wage and quantity of labor.
Challenges
- Before you check each situation, say whether the change is about firms (the value of what workers make) or about workers (who is willing to work at each wage).
- For each situation, say what happens to the wage and to the number of people working.
- Find two situations that raise employment. Do they move the wage the same way?