A labor market differs from a product market because A

Economics Dec 14, 2020

A labor market differs from a product market because

A. in a labor market, firms are suppliers and households are demanders.

B. the usual laws of economics do not apply to labor markets.

C. supply and demand are only relevant for labor markets.

D. supply and demand are only relevant for product markets.

E. in a labor market, firms are demanders and households are suppliers.

Expert Solution

The correct option is E. in a labor market, firms are demanders and households are suppliers.

The labor market is the market where household supply firms with human capital or simply known as workers and workers usually apply in one or more firms to get a job that suits their skills and experiences.

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