Answer to Question #318263 in Microeconomics for Kgothatso

Question

Differentiate between product market and labour market (use diagrams that explain the interactions in the markets)

Answer 1

The labor market: In which the emphasis is on the relationship between employers and employees, as well as how wages are set by human resource management. It helps in determination of the demand and supply of labor and a given wage rate.

The product market: This market focuses on the relationship between firms and their customers, as well as how the marketing department sets prices.Helps in determination of demand and supply of commodities at a prevailing market price.