Consider the labour market, and suppose the supply of labour falls (due to large-scale departure of workers
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Question:
Consider the labour market, and suppose the supply of labour falls (due to large-scale departure of workers to another country), resulting in a new equilibrium price and quantity of labour. Using diagrams , explain the role of price as a signal and as an incentive for workers (the suppliers of about) and firms (the demanders of labour) in reallocating resources.
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