Asked by Brett LeVine on Jun 19, 2024
Verified
In an unregulated labor market, the wage adjusts to balance labor supply and labor demand.
Labor Market
The market in which individuals offer their labor to employers in exchange for wages, salaries, or other forms of compensation.
Labor Supply
The complete count of hours that individuals in the workforce are willing to contribute and can work, at a determined rate of remuneration.
Labor Demand
Labor demand represents the total amount of workers that employers are willing and able to hire at a given wage rate in a particular market.
- Identify the role of supply and demand in determining wages in the labor market.
Verified Answer
DA
Danil AstashkinJun 21, 2024
Final Answer :
True
Explanation :
In an unregulated labor market, wages adjust based on the principles of supply and demand. If there is a high demand for labor but a low supply, wages will increase to attract more workers. Conversely, if there is a high supply of labor but low demand, wages will decrease. This adjustment process helps balance labor supply and demand.
Learning Objectives
- Identify the role of supply and demand in determining wages in the labor market.