Why are the factors that shift the demand for a product different from the factors that shift the demand

for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?

The product market is a market or place where the demand and supply of finished goods happened. Here the different companies offer their varied products to the different consumers at a price that is fixed by the forces of demand and supply.

The labor market is a market or place where the demand and supply of labor happen. Here the varied labors provide the supply and the employers created their demand.

Because of this, there are varied economic agents for labor and goods.

The factors are also different which affects both labor and goods.

Let’s take an example like you are going to buy a mobile phone, then the price of apple mobile phone may affect due to the demand for Samsung mobile phones whereas the demand for labor will shift towards the product which has more demand.

This differentiation of factors happened because of the economics agent’s heterogeneity.

Similarly, there is a case for the supply side it is also affected by the economic agents.