🧪 Economics Labor Economics Simulation

Labor economics is built on one deceptively simple graph: a supply curve of workers and a demand curve of employers, crossing at an equilibrium wage and employment level. This simulator renders that graph in 3D and lets you test its most debated policy question — what a minimum wage actually does — under two market structures. In a competitive labor market with many employers, a wage floor above equilibrium prices some workers out of jobs, creating unemployment: the gap between how many people want to work at that wage and how many firms will hire. But real labor markets are rarely perfectly competitive; a single dominant employer (a monopsony) already suppresses both wages and hiring below competitive levels because raising pay for one more worker means raising it for everyone already on payroll. Toggle between the two structures, drag the minimum-wage slider, and watch the equilibrium point, the marginal-factor-cost kink, and the unemployment/employment-gain regions respond exactly as the underlying supply, demand and marginal-cost curves dictate.