Changes in the population size generally lead to shifts of the labour supply curve.

Question

Quizplus · Accepted Answer

When the population size changes, there is a corresponding change in the number of people available for work, which leads to a shift in the labour supply curve. An increase in population size will shift the curve to the right, indicating a larger quantity of labour supplied at each wage level, while a decrease in population will shift the curve to the left, indicating a smaller quantity of labour supplied at each wage level.

Changes in the Population Size Generally Lead to Shifts of the Labour