![]() ![]() These are people that are supplying their labor to the firms to pick the corn, right? So you gotta keep that in mind that it's almost like the rules have swapped here. First notice, like I said, the supply of corn pickers, right? These are individuals. But let's notice what the differences are. So let's go ahead and look here on the left graph, we've got a market for corn pickers and this looks like very similar to what we've seen in product markets, right? We've got a downward sloping demand, upward sloping supply, So nothing really too different here. So the demand for the labor is derived from the demand for the actual good being produced itself. We use this term derived demand because it depends on the other on the other demand of the good being produced, right? So if there was no demand for the good being produced, there would be no demand for this labor. So what this means is that the demand for labor as well as other factors of production? Well, it's a derived demand. So you can imagine as there's more and more demand for a good, there's gonna be more and more demand for the labor to produce the good. Right? So it's gonna depend on the demand for the good. So you're not gonna demand laborers to produce these booger flavored pizzas that no one wants to buy. Okay, so the good being produced, you can imagine if it's some good that no one wants to buy, like, I don't know, like a booger flavored pizza or something like that. So in this case it's the firm that is demanding the labor and it's the individuals who supply the labor, right? So when we see a firm's demand for labor, well it's gonna depend, it depends on the demand for the good being produced. So remember we're talking about the demand for labor. Alright, So now let's discuss the firm's demand curve for labor in a little more detail.
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