3.5.1 - demand for labour
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8 Terms
labour market - who supplies who demands
supply: workers
demand: firms
what kind of demand is demand for labour
derived demand - depends on the demand for goods/services
4 factors influencing the demand for labour
price of g+s produced
demand for g+s produced
ability to substitute labour with machinery
productivity of labour
price of g+s produced
high price = higher demand for labour:
high price = higher marginal revenue product of labour
high price = incentive to supply more (upwards sloping supply curve
what is marginal revenue product of labour
extra revenue generated when an additional worker is employed
demand for the final product
high demand = higher demand for labour
usually in an economic boom
ability to substitute
more cost-effective to switch = lower demand for labour
productivity of labour
high productivity = higher demand for labour
productivity often increases through training
Note 
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