Brooke Vasquez April 24, 2018
How supply and demand are affected by the labor market
The law of supply and demand explains the interactions between the supply and demand
of a resource. Many of these resources include the laborers or products. Low supply and high
demand do increase price. In the case of high supply and low demand, the price will tent to
plummet. Supply and demand are the basic law of a free market system. A free market is a
system where one is free to choose goods and services to consume and make. Labor markets do
indeed contain demand and supply curves similar to the product market. Supply and demand also
determine the price in the labor market. This includes labor costs and wages. Any relationships
between levels of supply and demand for a product will automatically determine its price in the
market. If there is a high salary or wage, the labor market will have a higher price. However, a
low salary or wage will have an increase in the labor market. The united States economy relies
