Suppose there are two types of labour, high- skilled and low- skilled. The demand curve for
High- skilled labour lies _______ the demand curve for low- skilled labour and the supply curve of high- skilled labour lies _______ the supply curve of low- skilled labour.

Question

Quizplus · Accepted Answer

The demand curve for high-skilled labour lies above the demand curve for low-skilled labour because high-skilled labour is more productive and therefore more valuable to employers. The supply curve of high-skilled labour lies below the supply curve of low-skilled labour because there are fewer high-skilled workers than low-skilled workers.

Suppose There Are Two Types of Labour, High- Skilled and Low-