Influence of Labour Market on Demand & Supply-Samples for Studnets

Question: Discuss about how Labour market can influence both demand and supply side of a particular product by changing their wage rate. Answer: Introduction: Labour is one of the essential factors of production that can affect the price of the product. If they demand for high wage then the producer increases the price level for each product to compensate this extra cost (Liu et al.). In this context, the role of labour union is very important as they influence other labours to demand more wage. Hence, under a production system, the role of labour union is crucial (Ahlquist). Thus, it is very essential to analyse the role of labour union under a particular production system and role of labour market to influence total demand and supply of a particular product. Background: To analyse those impacts, the researcher needs to choose a particular company, which has huge labour force with a strong labour union and have significant market share. Large share of market indicates that the product of this company has huge demand among customers. Hence, a decrease or increase in price can indicate the demand and supply side of this product. Analysis: To analyse the entire effects, the researcher needs to collect secondary data from this particular company. At first, the research finds the relation between wage and price level. For this, hypothesis testing will be beneficial. From, this the researcher can identify a relation between labour market and its impact on demand and supply. Conclusion: In conclusion, the researcher needs to summarise the whole discussion with outcomes. From this conclusion, a person can understand the entire scenario that whether labour market has any impact on demand and supply or not and how labour union can influence labourers to increase wage. References: Ahlquist, John S. "Labor unions, political representation, and economic inequality."Annual Review of Political Science20 (2017): 409-432. Liu, Jenny X., et al. "Global health workforce labor market projections for 2030."Human resources for health15.1 (2017): 11.