ECON 203 Lecture Notes - Lecture 7: Demand Curve, This Is The End

• School: University of Calgary
• Department: Economics
• Course: ECON 203
• Professor: Peter Tracey

Document Summary

Just answer the question and give him your thoughts. You show him you tried your going to go well. You don"t have to agree with anything he says. Wage on y number of workers of x. Demand of labour curve is that the lower the wage the more workers they want to hire, this creates a downwords line. The supply of labour curve is that as the wages increase more people want to work, this creates an upwards slope. Equilibrium means that everyone who wants to work can find work. The natural equilibrium is probably below that of the minimum wage limit. This means the government steps in an attempt to raise that minimum wage level. We say that minimum wage there is greater unemployment, the different between the number of people who want to work versus the number who actually find work. For the minimum wage to even be effective it needs to be above the equilibrium.