Principles of Microeconomics / Unit 13 MIC 1209 short lesson, about 20 seconds
Derived Demand and Shifts in Labor Demand
Captions available
The idea
Labor demand is derived from product demand: a higher product price raises marginal revenue product at every hiring level. Demand also shifts with technology, complementary or substitute factors, and the number of firms hiring.
In practice
More airplane orders raise the pay of assembly workers.
Where people slip
A wage change moves along the demand curve; only the four factors shift it.
Your place on the trail
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