Understanding Labor Markets and Equilibrium Wage Rates

The video tutorial explores the dynamics of labour markets, comparing them to normal markets. It explains the downward sloping labour demand curve, derived from the marginal revenue product of labour, and the upward sloping labour supply curve, influenced by wage rates. The tutorial discusses market equilibrium under perfect competition and examines how shifts in demand and supply curves, due to factors like technology and immigration, affect wage rates and employment levels.

What factors can shift the labor demand curve?

Describe the impact of population size on the supply of labor.