what is labour force and labour supply differentiate between them with example explain in detail.I am not able to understand with study material.plz explain line by line and plz put video for this.
Let us understand the meaning of both these terms woth the help of stusy material itself.
1. Labour supply: This indicates the amount of labour that individuals are willing to offer at a particular wage rate. In other words, it refers to the supply of labour corresponding to different wage rates. Labour supply is measured in terms of man-hours, that is, the number of hours a person works. Since labour supply is measured in terms of man-hours, it can be increased (or decreased) even when the number of workers remains unchanged, by increasing (or decreasing) man-hours. For instance, if a worker increases his working hours from 8 hours to 10 hours, then this amounts to an increase in the labour supply by two hours.
2. Labour force: This indicates the number of individuals who are actually working or are willing to work at a particular wage rate. Unlike labour supply, labour force is measured in terms of the actual number of workers. This implies that labour force can be increased (or decreased) only by increasing (or decreasing) the actual number of workers.
The key difference among both these terms is that the labour force is the number of individuals who are working or willing to work at a particular wage rate whereas, labour supply is the number of hours of labour that people in that labour force are willing to offer to the firm.
For example, if 10 people are willing to work in a firm for 8 hours a day, then
labour force = 10 individuals
Labour supply = 80 hours