00:01
So a labor demand curve is a downward sloping function between the wage, w, and the amount of labor supplied l.
00:07
It says that as the wage falls, firms want to hire more workers, right? remember, in the market for labor, the people who buy labor are companies, firms, right? workers don't demand labor.
00:24
Workers supply labor, right? workers supply.
00:27
So the demand for labor function is firms.
00:30
How much firms want to hire labor at different wages.
00:33
To make this thing go out, we have to say that for any amount of labor, firms have to pay higher wages, right? firms want to pay higher wages, are willing to pay higher wages.
00:43
So we're looking for stories that make the firm want to pay higher wages.
00:49
A, price of inputs.
00:54
This is not going to do it.
00:57
This won't do it.
00:58
Why? well, this makes the product less attractive, right? product more expensive.
01:06
If the price of inputs goes up, you're going to need less demand for workers.
01:14
This shifts the demand curve the wrong way.
01:18
The price of making this product is going up.
01:20
It means that we're going to have to charge a higher price, which means there'll be less of a quantity demanded for our product.
01:25
If fewer people want our product, we actually want fewer workers, not more workers, right? b, decrease in immigration, right? again, this is affecting the supply of labor, not the demand for labor, it's affecting supply...