Assume that consumer demand for hybrid vehicles is increasing and that for large SUVs it is decreasing.The labor supply is the same for both markets.
a.How does this difference in consumer demand affect the labor demand for workers producing hybrid vehicles versus that of workers making SUVs?
b.Using a supply and demand graph and your answer to part a,show why workers producing hybrids earn more than workers who build SUVs.

Question

Assume that consumer demand for hybrid vehicles is increasing and that for large SUVs it is decreasing.The labor supply is the same for both markets.
a.How does this difference in consumer demand affect the labor demand for workers producing hybrid vehicles versus that of workers making SUVs? 
b.Using a supply and demand graph and your answer to part a,show why workers producing hybrids earn more than workers who build SUVs.

Quizplus · Accepted Answer

The Answer of Assume that consumer demand for hybrid vehicles is increasing and that for large SUVs it is decreasing.The labor supply is the same for both markets.
a.How does this difference in consumer demand affect the labor demand for workers producing hybrid vehicles versus that of workers making SUVs? 
b.Using a supply and demand graph and your answer to part a,show why workers producing hybrids earn more than workers who build SUVs.

Assume That Consumer Demand for Hybrid Vehicles Is Increasing and That