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In What Respect Do the Supply and Demand Curves in the Labour Market Differ from Those in the Goods Market? - Economics

Short Note

In what respect do the supply and demand curves in the labour market differ from those in the goods market?

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Solution

The supply and demand curves in the labour market differ from those in the goods market in the following ways:

1) In a goods market, the demand for goods is made by consumers or households; while in a labour market, the demand for labour is made by firms.

2) In a goods market, the supply of goods is made by firms; while in a labour market, the supply of labour is made by households.

So, in a goods market, firms act as suppliers; in a labour market, households act as suppliers.

Concept: Market Supply Curve
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APPEARS IN

NCERT Class 12 Economics Introductory Microeconomics
Chapter 5 Market Equilibrium
Exercise | Q 17 | Page 87
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