Question

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

Answer 1

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.