Labor Supply & Demand — 2D Equilibrium Simulator

⚙️ Controls

Supply curve slope (b) 1.00 Demand curve slope (d) 1.00 Minimum wage floor 0

Equilibrium wage

—

Equilibrium employment

—

Surplus / shortage

Wage floor

off

ℹ️ About

The labor supply curve slopes upward — a higher wage draws more workers into the market. The labor demand curve slopes downward — employers hire fewer workers as the wage rises. Their intersection is the competitive equilibrium wage and employment level. Setting a minimum wage above equilibrium creates a surplus of labor (more workers want jobs than employers want to hire — unemployment); a floor at or below equilibrium has no effect.