A local labor market for lawn-mowing workers is initially in equilibrium.If researchers develop a new inexpensive grass seed that provides a lush,slow-growing lawn,which of the following will occur in the short run?

Question

Quizplus · Accepted Answer

With the development of the new grass seed, the demand for lawn-mowing workers will drop as the slow-growing grass will require less maintenance. This will lead to a decrease in the equilibrium wage rate and a reduction in employment. The supply of lawn-mowing workers is not affected by the development of the new grass seed, so option A and D can be eliminated. Similarly, option B is incorrect as the increase in labor demand will not occur due to the development of this new product. Therefore, option E is the correct answer.

A Local Labor Market for Lawn-Mowing Workers Is Initially in Equilibrium.If