Principles of Microeconomics / Unit 3 MIC 0202 short lesson, about 20 seconds
The Wage Is the Price of Labor
Captions available
The idea
In a labor market households supply and employers demand. A higher wage lowers the quantity of labor employers want and raises the quantity workers offer, so the curves slope as usual.
In practice
Above the equilibrium wage, applicants outnumber openings; below it, employers cannot fill posts.
Where people slip
Quantity is hours or workers; the price is total compensation, benefits included, not the hourly figure alone.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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