Consider the following labor supply and demand diagram: For each of the following situations,explain (and illustrate)what would happen to the market for labor.
(a)The firms who are employing these workers experience a big increase in the demand for their products.
(b)Intel develops a new computer chip that is capable of doing the same work as two employees.Assume that workers and computers are substitutes in Intel's production function.
(c)A newly elected U.S.president issues an executive order,restricting all immigration into the U.S.

Question

Consider the following labor supply and demand diagram:  For each of the following situations,explain (and illustrate)what would happen to the market for labor.
(a)The firms who are employing these workers experience a big increase in the demand for their products.
(b)Intel develops a new computer chip that is capable of doing the same work as two employees.Assume that workers and computers are substitutes in Intel's production function.
(c)A newly elected U.S.president issues an executive order,restricting all immigration into the U.S.

Quizplus · Accepted Answer

The Answer of Consider the following labor supply and demand diagram:  For each of the following situations,explain (and illustrate)what would happen to the market for labor.
(a)The firms who are employing these workers experience a big increase in the demand for their products.
(b)Intel develops a new computer chip that is capable of doing the same work as two employees.Assume that workers and computers are substitutes in Intel's production function.
(c)A newly elected U.S.president issues an executive order,restricting all immigration into the U.S.

Consider the Following Labor Supply and Demand Diagram: for Each