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What is a derived demand
not a direct or primary demand, but rather it is derived from the demand for the goods and services that labour produces
What causes shifts in the labour supply
change in consumer demand, change in price of a product, increase in labour productivity, change in cost of capital equipment
What does the demand curve for labour tell us
how many workers a business will employ at a given wage rate in each time
What is the marginal revenue product of labour
the extra revenue generated when an additional worker is employed
MRPL = marginal product of labour x marginal revenue
Limitations of the MRPL Concept
measuring labour efficiency can be difficult
relatively easy to measure productivity in construction
collaborative work makes it difficult to establish the productivity of individual workers
may people set their own pay such as the self-employed
Factors influencing demand for labour
Wages rates
Demand for the product
Prices of other factors of production
Wages in other countries
Technology
Regulation
What is demand for labour
shows the quantitiy of labour that employers would wish to hire at each possible wage rate
Note 
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