DEMAND FOR LABOUR

Question 1

FACTORS THAT INFLUENCE LABOUR DEMAND

Answer 1

➳Wage
➳Technology
➳Productivity
➳Changes in demand for a firm’s product.

Question 2

DERIVED DEMAND

Answer 2

➳The demand for labour comes from firms and the supply of labour comes from the economically active population.
➳When firms demand workers it is because they need them to make the goods that are being demanded by their customers. So the demand for labour is driven by the demand for the goods that this labour would produce.
➳When the demand for the good rises so does the labour.