Scribd
Upload
48 views25 pages

Eco ch23

This document provides an overview of a chapter on the impact of changes in the supply and demand for labor. It outlines objectives to examine how changes in the demand for and supply of labor affect the wage rate and labor supply/demand. It then discusses how a rightward or leftward shift in the demand or supply curves would impact the wage rate and labor equilibrium. Reasons for changes in demand and supply of labor are noted to see Chapter 22. The roles and effects of trade unions on wages and employment are described through use of a supply and demand diagram. The document concludes with case studies and sample multiple choice questions.

Uploaded by

Rafid Al Nahiyan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
48 views25 pages

Eco ch23

This document provides an overview of a chapter on the impact of changes in the supply and demand for labor. It outlines objectives to examine how changes in the demand for and supply of labor affect the wage rate and labor supply/demand. It then discusses how a rightward or leftward shift in the demand or supply curves would impact the wage rate and labor equilibrium. Reasons for changes in demand and supply of labor are noted to see Chapter 22. The roles and effects of trade unions on wages and employment are described through use of a supply and demand diagram. The document concludes with case studies and sample multiple choice questions.

Uploaded by

Rafid Al Nahiyan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 25

W E L C O M E

TO
ECONOMICS

hey, I’m
Ibrahim!
The Impact of Changes in the
Supply and Demand for Labour
Ch- 23; Pg- 173

Objectives for this chapter :


 Changes in Demand for Labour
 Changes in Supply for Labour
 Importance of Trade Union
changes in Demand for Labour

What will happen


to the wage rate and supply of labour
if
the demand for labor
shifts/changes to right?

If the demand curve has a right shift :-

i. The supply of labour will increase.


ii. The wage rate will increase.
iii. There will be a shift in equilibrium point.
changes in Demand for Labour

What will happen


to the wage rate and supply of labour
if
the demand for labor
shifts/changes to left?

If the demand curve has a left shift :-

i. The supply of labour will decrease.


ii. The wage rate will decrease.
iii. There will be a shift in equilibrium point.
reasons for changes
in Demand for Labour

see chapter 22
changes in Supply for Labour

What will happen


to the wage rate and demand of labour
if
the supply for labor
shifts/changes to right?

If the supply curve has a right shift :-

i. The demand of labour will increase.


ii. The wage rate will decrease.
iii. There will be a shift in equilibrium point.
changes in Supply for Labour

What will happen


to the wage rate and demand of labour
if
the supply for labor
shifts/changes to left?

If the supply curve has a left shift :-

i. The demand of labour will decrease.


ii. The wage rate will increase.
iii. There will be a shift in equilibrium point.
reasons for changes
in Supply for Labour

see chapter 22
Trade Unions
Trade Unions are organisations that exist to protect the interests of workers

the main aims of Trade Unions are to :-

i. Negotiate pay and working conditions with employers.

ii. Provide legal protection for members, such as representation in court if an employee

is fighting a case against an employer (discrimination in workplace, for example).

iii. Put pressure on the government to pass legislation that improves the rights of workers.

iv. Provide financial benefits, such as strike pay whenever necessary.


Effects of Trade Unions on
Wages and Employment
 The equilibrium wage without trade union interference is W1, where the supply , SL1,
and demand , DL1, for labour is equal.

 If a trade union becomes involved,

it will force wages up.

 This means that an employer cannot hire workers

below the wage rate of W2.

 As a result , a new supply curve for labour , SL2, emerges.

 This supply curve has horizontal section, which is perfectly elastic.

 This means that the employer must pay W2 for all workers employed up to QL3.

 If the firm needs to hire more workers beyond QL3, wages will rise further.
CASE STUDIES

BOOK PG : 163-164
(1 - 2)
CASE STUDIES

BOOK PG : 166
(1,2,3)
CASE STUDIES

BOOK PG : 168-169
(1 - 4)
CASE STUDIES
always
has
been

wait,
another
case
study?!!

BOOK PG : 171
M.C.Q
1. Which of the following will cause wage rates to rise in a labour market?

a. an increase in the supply of labour

b. an increase in the demand of labour

c. an increase in supply and a fall in demand for labour

d. a fall in the demand for labour

2. Which of the following would reduce the power of trade unions?


a. an increase in anti-trade union legislation b. low wages

c. a decrease in trade union subscriptions

d. favourable media coverage of trade union activity

3. Company or factory where all the workers must belong to a particular trade union is ___________.

a. open shop b. closed shop

c. broken shop d. new shop


answers
answers
answers
answers
answers
answers
answers
answers
answers

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy