Markets

Supply and Demand determines equilibrium for a company like Apple. Demand comes from the company who wants to hire workers. Supply comes from people who need jobs. The firms who sold goods and services in the unit on supply and demand now become the buyers in the labor market. Firms need workers to make products, design those products, package them, sell them, advertise for them, ship them, and distribute them, among other tasks. No worker will do this for free, and so firms must enter into the labor market and buy labor. Firms determine the amount of labor that they demand according to several considerations. The labor market will reach equilibrium as the amount of workers willing to work for a certain price equals the amount of workers employers are willing to hire for that wage. On a supply and demand curve the employees represent the supply side while the employers represent the demand side. Labor Demand Shift happens when improvements in overall technology increases the labor productivity, which increases the marginal value product of labor to the firm, which shifts the labor demand curve to the right. The equilibrium level of employment increases, but the effect on the wage depends on the relative magnitude of the two shifts. Apple does not seem to be affected by the recession as instead of cutting back on employee they have added employees to their work force for the last three years. Many factors of the market must be determined like Unrestricted Labor Markets, Restricted Labor Markets, and what is the minimum wage and how much are you going to pay employees.