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Published by Nicole Beatty

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Published by: Nicole Beatty on Jun 09, 2011
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Historical Example of Labor Supply and Demand

What was the impact on the supply and demand of labor on one sector of the labor market? During the Great Depression a lot of companies in the primary sector were caught by surprise and cut down on production or purchasing goods and the consumers for fear of being out of work or those who were already out of work stopped purchasing goods therefore there was no supply nor a demand. Both parts cutback due to the crisis. Explain the factors that affected labor demand and labor supply in the chosen historical example. The factors that affected labor demand and labor supply during the Great Depression was the fact that due to banking panics and the collapse of the world monetary system this caused increasing unemployment, falling production and falling prices. Therefore their was no labor demand as companies were forced to cut back or go out of business and the labor supply was plentiful as unemployment was rampid.

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