9.1 THE ECONOMIC IMPROTANCE OF LABOR MARKETS Competitive labor market where the forces of demand and supply interact to determine wage rates and employment o Labor market channel in the economy through which supplies of essential labor are obtained by firms at acceptable prices and through which the population obtains most of its livelihood by selling its labor at offered wages and salaries9.1 THE ECONOMIC IMPROTANCE OF LABOR MARKETS • Competitive labor market – where the forces of demand and supply interact to determine wage rates and employment. • Labor market – channel in the economy through which supplies of essential labor are obtained by firms at acceptable prices and through which the population obtains most of its livelihood by selling its labor at offered wages and salaries