You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written. Change in Factor of ProductionExample: There is a decrease in the price of oil,and you make plastic containers.Effect on Labor MarketThe decrease in the price of oil will make itcheaper to produce plastic containers. The firmcan lower its price and it will sell more. This willincrease the demand for labor at your firm.1. Apple develops the iPhone and demandfor it surges as people realize the benefitsof this improved technology. Youmanufacture flip phones.2. You own a sports equipmentmanufacturing firm. You were justinformed rent at your warehouse spacewould double.3. You develop a popular video game andcontinue to develop new versions to keeppeople interested in the game.4. The coronavirus pandemic forces peopleto shelter in place. You are an airplanemechanic looking for work in Louisvillewhere UPS is headquartered.5. There is an increase in the price of steel.You make tractors.

Apple develops the iPhone and demand for it surges as people realize the benefits of this improved…

Answered: Change in Factor of Production Example:…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 26CTQ: Why are the factors that shift the demand for a product different from the factors that shift the...

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You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.

Change in Factor of Production
Example: There is a decrease in the price of oil,
and you make plastic containers.
Effect on Labor Market
The decrease in the price of oil will make it
cheaper to produce plastic containers. The firm
can lower its price and it will sell more. This will
increase the demand for labor at your firm.
1. Apple develops the iPhone and demand
for it surges as people realize the benefits
of this improved technology. You
manufacture flip phones.
2. You own a sports equipment
manufacturing firm. You were just
informed rent at your warehouse space
would double.
3. You develop a popular video game and
continue to develop new versions to keep
people interested in the game.
4. The coronavirus pandemic forces people
to shelter in place. You are an airplane
mechanic looking for work in Louisville
where UPS is headquartered.
5. There is an increase in the price of steel.
You make tractors.

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