Competitive labour market equilibrium
Competitive labour market equilibrium
A perfectly competitive labour market contains many firms and workers, none of whom can influence the wage rate. The market wage is determined where the demand for labour equals the supply of labour.
Step-by-step lessons covering AQA A Level Economics 1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.