The following table includes information on the labor market for bakers.

a.What is the equilibrium wage and quantity of bakers in this market?
b.With the invention of instant teleportation, baker positions can be outsourced to countries with cheaper labor without sacrificing freshly baked goods.This reduces the labor demand for bakers by four-fifths.What is the new equilibrium wage and quantity of bakers hired?
c.Who wins in this situation in the short run? Who loses? What needs to happen in the long run so that the economic losers can benefit from outsourcing?

Question

The following table includes information on the labor market for bakers.
  
a.What is the equilibrium wage and quantity of bakers in this market?
b.With the invention of instant teleportation, baker positions can be outsourced to countries with cheaper labor without sacrificing freshly baked goods.This reduces the labor demand for bakers by four-fifths.What is the new equilibrium wage and quantity of bakers hired?
c.Who wins in this situation in the short run? Who loses? What needs to happen in the long run so that the economic losers can benefit from outsourcing?

Quizplus · Accepted Answer

The Answer of The following table includes information on the labor market for bakers.
  
a.What is the equilibrium wage and quantity of bakers in this market?
b.With the invention of instant teleportation, baker positions can be outsourced to countries with cheaper labor without sacrificing freshly baked goods.This reduces the labor demand for bakers by four-fifths.What is the new equilibrium wage and quantity of bakers hired?
c.Who wins in this situation in the short run? Who loses? What needs to happen in the long run so that the economic losers can benefit from outsourcing?

The Following Table Includes Information on the Labor Market for Bakers