The demand curve for labour shows the relationship between the wage rate and number of workers employed
The labour demand curve shows how many workers firms want to hire at each wage rate. When wages rise, firms hire fewer workers — so the curve slopes downward.
Formula
Labour Demand Curve: W = MRP (downward-sloping)
Real World
When the UK minimum wage rose to £11.44 in April 2024, several fast-food chains including McDonald's reduced staff hours — demonstrating movement up the labour demand curve as the wage rate increased.
Exam Focus
Distinguish clearly between a movement along the curve (wage change) and a shift of the curve (anything else) — confusing these loses marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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