Why political economist does not consider wage rate as determinant of demand and supply of labour?
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Heya....
Political leaders don't consider wages rate as determinants of supply and demand because....
** These are the factors of production and payment generations...
** These are fixed according to situations not the demand and supply set according to them...
** Working and labouring is a continues process and it will not be stop and demand of labour will not effect to supply and demand directly coz they are only one part of factor...
-- Be Brainly....
Political leaders don't consider wages rate as determinants of supply and demand because....
** These are the factors of production and payment generations...
** These are fixed according to situations not the demand and supply set according to them...
** Working and labouring is a continues process and it will not be stop and demand of labour will not effect to supply and demand directly coz they are only one part of factor...
-- Be Brainly....
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3
hey mate ur ans
The Demand for Labour
Many factors influence how many people a business is willing and able to take on. But we start with the most obvious – the wage rate or salary
There is an inverse relationship between the demand for labour and the wage rate that a business needs to pay as they take on more workers
If the wage rate is high, it is more costly to hire extra employees
When wages are lower, labour becomes relatively cheaper than for example using capital inputs. A fall in the wage rate might create a substitution effect and lead to an expansion in labour demand.
The Demand for Labour
Many factors influence how many people a business is willing and able to take on. But we start with the most obvious – the wage rate or salary
There is an inverse relationship between the demand for labour and the wage rate that a business needs to pay as they take on more workers
If the wage rate is high, it is more costly to hire extra employees
When wages are lower, labour becomes relatively cheaper than for example using capital inputs. A fall in the wage rate might create a substitution effect and lead to an expansion in labour demand.
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