A wage is the price paid by an employer for the supply of labor. In economic theory, the law of supply states that when the price of something rises, people will produce (or supply) more of it. They will produce less when the price falls. Applied to the market for labor, this means that when wages rise, more people are willing to work, and when wages fall, fewer people are willing to work. The demand for labor is determined by the willingness of employers to hire a worker. In economic theory, the law of demand states that when the price of something rises, people will purchase (or demand) less of it, and when the price of something falls, people will purchase more of it. This means that when wages rise, employers tend to prefer to hire fewer people. Or they might have their employees work fewer hours to cut back on their labor expenses, or cut the labour force. In other words, the supply and demand for labor depend in large part on the wage paid to workers. When a government forces wages to be higher than what the natural interaction of supply and demand for wages would dictate. @Neco2040
