1. Demand - Demand summarizes the behavior of buyers. The quantity of a product or service that buyers demand varies with its price. As the price rises, the quantity demanded falls, and vice-versa.
2. Supply - Supply summarizes the behavior of producers and sellers. The quantity of a product or service produced and offered for sale depends on its price. As the price rises, the quantity supplied rises, and vice-versa.
3. Equilibrium – Equilibrium summarizes the outcome of the market process. If the price of a product or service is “too high,” the quantity supplied will exceed the quantity demanded, creating a surplus of the product. That surplus leads sellers to cut prices. However, if the price of a product or service is “too low,” the quantity supplied will fall short of the quantity demanded, creating a shortage of the product. That shortage leads sellers to raise prices. In equilibrium, the price is “just right,” with no surplus or shortage, because the quantity demanded equals the quantity supplied.
When you factor the cost of Union Labor into the equation . . . . . . .