labour supply curve is a line indicating in a wage/employment
diagram how much work (measured in work hours) is being supplied
at different wage rates. It is upward sloping, meaning that people
want to work more if the pay gets better.
The position of the labour supply curve reflects the institutional
arrangements governing the labour market:
In an economy without trade unions, in which each worker negotiates
the wage individually with the firm, the aggregate individual
labour supply curve that results from summing up all individual
work offers is in the blue position.
In an economy in which trade unions negotiate collective
wage contracts with firms that are binding for all workers, the
trade union labour supply curve
is in the red position, to the left of the individual labour supply