In: Economics
If we talk about a demand and supply curve then it shows the relationship between demand and supply
The demand curve is upward sloping in nature
The supply curve is downward sloping in nature
The point at which they intersect is called equilibrium
The price corresponding to equilibrium is called equilibrium price and the quantity corresponding to equilibrium is called equilibrium quantity
Similar happens in case of labour as well where demand and supply intersects
Demand represents the demand of labour in the market and supply represent the supply of labour in the market
It can be anyone like teenager supply and teenager demand in the job market
So the point at which demand and supply of labour intersect is called equilibrium because the workers are paid wages and the quantity corresponding at which they intersect is called equilibrium quantity of labour