Why a Greater Demand for Workers Leads to Higher Wages

11/04/23

“Why does a greater demand for workers lead to higher wages?”

In the market world, workers choose where to work based on wages. Different workers will want different levels of wages. If a company doesn’t need many people with respect to the population, then it can offer a low wage and hire whoever is willing to take it. But as demand goes up, the firm will have to hire more workers, in which case wages will go up to attract more people to the company. This is Why a Greater Demand for Workers Leads to Higher Wages.

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