Households create the supply in the labour market.

Households create the supply in the goods market.

Firms create the demand in the goods market.

Firms create the supply in the labour market.

MUx/MUy > Px/Py and all of her income is spent.

MUx/Px = MUy/Py and she is below her budget constraint.

MUx = MUy and she has spent all of her income.

MUx/Px = MUy/Py and all of her income is spent.

the wages of unskilled workers.

unemployment among unskilled workers.

employment of unskilled workers.

the number of people seeking employment as unskilled workers.

normal profit only

both normal and economic profit

loss

economic profit only