their labour services to an employer. When a worker who is employed by
a firm producing men’s suits in Montreal decides instead to supply his or
her labour services to a firm producing women’s shoes in Winnipeg, the
worker must physically travel to Winnipeg. This has an important
consequence.
The high prices paid for land in the centre of large cities, where demand
for land is highest, cannot lead to an increase in the quantity of land
supplied because it is an immobile factor. The natural market response is
the construction of very tall buildings, increasing the amount of office or
residential space supplied per unit of land.
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Because of the need for labour’s physical presence when its services are provided for the
production of most goods and services, non-monetary considerations are much more
important for the supply of labour than for other factors of production.People may be satisfied with or frustrated by the kind of work they do,
where they do it, the people with whom they do it, and the social status
of their occupations. Because these considerations influence their