01Mar 2017
Supply and Demand
Posted in
Economics
Capitalism For Canada It is the law of supply and demand that determines wages. Wages will go down in the men’s hair cutting industry if there are too many people wanting to be barbers. Wages will go up in the computer software industry if there are too few programmers. It seems that many people think that the employee is at a disadvantage when it comes to employee/employer relations. If that were true, why does anyone make more than the minimum wage? Why haven’t all employers driven wages down to the minimum? Because both he and employees are subject to the law of supply and demand.
COMMENT FROM FACEBOOK:
COMMENT FROM FACEBOOK:
Maxwell Llewxam: The Law of supply and demand only really functions in efficient markets.
Capitalism For Canada: And pure laissez-faire capitalism is an efficient market. Actually the law of supply and demand works even in a dictatorship – there it’s called the black market.
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