The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. In a labor market, workers supply their labor to the market in exchange for wages, and their behavior is represented by the supply curve. Similarly, firms pay wages to obtain labor, and thus their behavior is represented by the demand curve. In this way, wages are the price of labor.

Graph Input Tool ? 20 Market for Labor in the Fast Food Industry 18 I Wage 12 ( Dollars per hour) 16 Supply Labor Demanded 360 Labor Supplied 675 14 (Thousands of (Thousands of workers) workers) 12 WAGE (Dollars per hour) 10 8 6 Demand 2 0 0 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers)Graph Input Tool ? 20 Market for Labor in the Fast Food Industry 18 I Wage 8 16 ( Dollars per hour) Supply Labor Demanded 540 Labor Supplied 225 14 Thousands of Thousands of workers) workers) 12 10 WAGE (Dollars per hour) 8 Demand 4 2 0 0 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers)Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Surplus or Shortage of Labor Pressure on Wages 12 8