The figure to the right illustrates the demand curve (D) and the supply curve (s) for a labor market. The market equilibrium is initially at point e,. Suppose the supply of labor decreases. Show how this affects the labor market. 1.) Using the line drawing tool, show how the market supply of labor changes by drawing a new market labor supply curve. Label the line "S?." 2.) Using the point drawing tool, show the new market equilibrium wage and level of employment. Label this point "e,." Carefully follow the instructions above, and only draw the required objects. Quantity of labor Wage (dollars per hour)

The figure to the right illustrates the demand curve (D) and the supply curve (s) for a labor market. The market equilibrium is initially at point e,. Suppose the supply of labor decreases. Show how this affects the labor market. 1.) Using the line drawing tool, show how the market supply of labor changes by drawing a new market labor supply curve. Label the line "S?." 2.) Using the point drawing tool, show the new market equilibrium wage and level of employment. Label this point "e,." Carefully follow the instructions above, and only draw the required objects. Quantity of labor Wage (dollars per hour)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

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