Economics: The Basics 1st Edition by Mike Mandel

تمرين 5

Suppose Toyota opens a new vehicle assembly plant employing 5,000 workers in a small town in Texas.
a) In the short run, what will happen to the labor demand curve in this town? Illustrate your answer using a supply-demand diagram.
b) How will pay and employment in the town change in the short run? Illustrate your answer using a supply-demand diagram.
c) In the long run, what will happen to the labor supply curve in the town? Illustrate your answer using a supply-demand diagram.