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Economics glossary · Work and what it pays

Supply of labour

What supply of labour means in economics, with an example and a question to test yourself.

Definition
Supply of labour
The supply of labour is the quantity of labour workers are willing to offer at each wage, trading paid work against time spent in leisure.
Not to be confused with: Demand for labour
The demand for labour is the quantity of labour employers wish to hire at each wage, other things being equal.
Test yourself

What is the difference between supply of labour and demand for labour?

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