Labor markets are different from most other markets because labor demand is

Question

Quizplus · Accepted Answer

Labor demand is a derived demand, which means it is dependent on the demand for the products that labor produces. As such, it is different from other markets where demand is driven by consumer preferences and desires. Labor demand can shift based on changes in the final prices of products produced by the labor, which again is different from most other markets. While wages do play a role in determining labor supply, labor demand is not typically unresponsive to changes in wages.

Labor Markets Are Different from Most Other Markets Because Labor