Supply of Labor: The supply of labor represents individuals who are willing and able to work at different wage levels. It depends on factors such as population size, education levels, and personal preferences.
Demand for Labor: The demand for labor represents employers or firms seeking to hire workers at different wage levels based on their production needs and profitability.
Equilibrium Wage: The equilibrium wage is determined by the intersection of labor supply and demand curves in a competitive labor market. It reflects both the value of workers' skills and the needs of employers.