The following figure shows wage versus labor supply.

-Refer to the figure above.Assume that the labor market initially is at an equilibrium at point C.Rapid population increases shift the supply of labor to S₂.Over time,technological changes reduces the demand for labor.In this scenario,the distance between point ________ and point ________ illustrates the number of unemployed workers.

Question

The following figure shows wage versus labor supply.
 
-Refer to the figure above.Assume that the labor market initially is at an equilibrium at point C.Rapid population increases shift the supply of labor to S₂.Over time,technological changes reduces the demand for labor.In this scenario,the distance between point ________ and point ________ illustrates the number of unemployed workers.

Quizplus · Accepted Answer

The distance between point F (where the new supply curve intersects the old demand curve) and point E (the new equilibrium point) represents the number of unemployed workers due to the decrease in demand for labor. The shift in supply from S₁ to S₂ does not directly cause unemployment, but the subsequent decrease in demand does.

The Following Figure Shows Wage Versus Labor Supply