• Explain the impact of new technology on the demand and supply curves of the labor market

• Explain price floors in the labor market such as minimum wage or a living wage

Markets for labor have demand and supply curves, just like markets for goods. The law of demand applies in

labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a

decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in
the quantity of labor demanded. The law of supply functions in labor markets, too: A higher price for labor

leads to a higher quantity of labor supplied; a lower price leads to a lower quantity supplied.

Equilibrium in the Labor Market

In 2020, nearly 41,000 registered nurses worked in the Minneapolis-St. Paul-Bloomington, Minnesota-

Wisconsin metropolitan area, according to the BLS. They worked for a variety of employers: hospitals, doctors’
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