The causes of shifts in the demand curve for labour
Several factors can shift the entire labour demand curve left or right. These include changes in product demand, worker productivity, and the price of capital.
Real World
The rapid growth of streaming platforms like Netflix sharply increased derived demand for software engineers and content creators, shifting the labour demand curve rightward and pushing up salaries across the tech sector in the early 2020s.
Exam Focus
For 'explain two causes' questions, state the cause, link it to MRP, and state the direction of the shift — three steps per cause.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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