Final answer:
A movement along the labor market demand curve is influenced by wage rate changes, while a shift is caused by changes in factors like productivity. Similarly, the supply curve moves with wage rate alterations and shifts due to external factors such as demographics. A living wage, as a type of price floor, can affect employment levels depending on its relation to the market equilibrium wage.
Step-by-step explanation:
The labor market for the fast-food industry is a key element of the overall economy, reflecting the principles of supply and demand for labor. When we discuss movements along the demand curve, we are looking at how the quantity of labor demanded changes in relation to the wage rate without any change in the other determinants. An example of this would be if a fast-food restaurant sees more customers and therefore hires more staff at the existing wage rate. Conversely, a shift in the demand curve for labor might occur due to changes in the productivity of labor, technological improvements, or changes in the price of the product the labor contributes to producing. Thus, a shift in the demand curve represents a change due to these other factors, not the wage rate.
Movements along the labor supply curve reflect the response of workers to changes in the wage rate, such as entering or leaving the market based on the attractiveness of the wages offered. A shift in the supply curve could be due to changes in workers' preferences, changes in alternative employment opportunities, or demographic changes in the workforce.
A living wage is considered a price floor because it is a mandated minimum threshold that employers must pay, above which all wage negotiations must start. This intervention is designed to ensure workers can earn enough to cover the basic costs of living. Imposing a living wage can have varying outcomes compared to a minimum wage, depending on its level relative to the market equilibrium wage. It could potentially lead to unemployment if set above the equilibrium wage rate where supply and demand meet, as some employers might not be able to afford the higher wage, similar to issues which can arise with a minimum wage.