The demand for labor:

Demand for labor is a derived demand. The modern production is taken on largely on the basis of anticipation of demand for goods. Throughout good trade, demand for labor will be more. Again, when capital is cheap, the employer will try to replace capital for labor. Whenever there is raise in investment, there will be raise in demand for labor.

In a competitive labor market, equilibrium will be established at the wage which equates the demand for labor with the supply of labor.

 Figure: Diagrammatic example of determination of wages in a market

In figure above, DL curve symbolizes demand for labor and SL curve symbolizes supply of labor. Demand and supply of labor are represented all along the X axis and wages are presented up to the Y axis. Wages are determined (i.e., OW) at that point (i.e., E) where the demand for labor is equivalent to the supply of labor (i.e., ON).

When demand for labor is high associative to its supply, wages will be high and vice-versa. On supply side, there are numerous imperfections. There is geographical immobility of labor. There might be shortage in the supply of some categories of labor (example, doctors & engineers). In some industries, the supply of labor is controlled by the trade unions.

Latest technology based Economics Online Tutoring Assistance

Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Marginal Productivity help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Marginal Productivity, project ideas and tutorials. We provide email based Marginal Productivity help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Marginal Productivity. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Marginal Productivity. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.