3 ms·
To simplify you can say wage is based on supply and demand.
by mrfusion 7y ago
To simplify you can say wage is based on supply and demand.
- ethn 7y agoSupply and demand (SD) doesn’t tell you what the equilibrium price is, which is what we are concerned with. That’s what this analysis resolves, and in this context, the long term view of the wage; of which the wage reaches a state closer to the SD equilibrium. But you’re right that the direction of price is completely subsumed by SD theory.