The supply of labour to a particular occupation is influenced by monetary and non-monetary considerations
People choose jobs based on more than just pay. Financial rewards (monetary factors) and non-financial rewards (non-monetary factors) both affect how many workers are willing to enter an occupation.
Real World
Goldman Sachs pays investment banking graduates starting salaries above £70,000 partly because the monetary rewards must compensate for long hours, high stress, and low non-monetary appeal — fewer workers are willing to supply labour at lower wages given those conditions.
Exam Focus
Always reference both monetary and non-monetary factors in supply questions — one-sided answers are capped at Level 2 marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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