00:01
We are going to be looking at the supply curve of labour, generally to discuss the difference between a movement along the supply curve and the shift of the supply curve.
00:17
So let's begin this analysis.
00:20
So the labour supply curve is an upward sloping supply curve.
00:30
To have a movement along the supply curve, this can only be explained by changes in the wage rate.
00:41
So if you have wage rate zero, an increase in the wage rate will result in an increase in the supply of labor.
00:51
Who supplies labor? ordinary people will supply labor.
00:55
Those who are qualified for the particular job will supply labor.
00:59
So, quantity can actually move from q1 q0 to q1.
01:05
Okay, so the labor supply can have the movement along the supply curve determined only by changes in the wage rate.
01:18
The wage rate causes movement along the supply curve.
01:25
But any other change, any other change will cause a shift.
01:30
Of the supply curve.
01:32
So for instance, you have things such as the size of the working population...