This follows from monotonically decreasing function of the real wage rate, the theory then predicted that, in the long-run equilibrium of the system, labor supply ( i . e . population ) will rise or fall to the number of workers needed at the subsistence wage.
32.
Note that ? is a little less than 1, so the top function is similar to an exponentially decreasing function of " r " except that at very small " r " it theoretically goes to infinity ( but this behavior appears at a value of " r " smaller than the radius of a proton ! ).
33.
Ordinarily labor demand will be an increasing function of the product's selling price " p " ( since a higher " p " makes it worthwhile to produce more output and to hire additional units of input in order to do so ), and a decreasing function of " w " ( since more expensive labor makes it worthwhile to hire less labor and produce less output ).
