Wages are determined by demand and supply
Wages are determined by demand and supply
In a competitive labour market, the equilibrium wage is determined where the demand for labour equals the supply of labour. Labour demand comes from firms, while labour supply comes from workers.
Step-by-step lessons on OCR GCSE Economics 2.7.2 Determination of wages. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.