1.1. In the following cases, state the direction of the shift of the demand curve for labor...

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1.1. In the following cases, state the direction of the shift of the demand curve for labor and what will happen, other things equal, to the market equilibrium wage rate and quantity of labor employed as a result.

a. Service industries, such as retailing and banking, experience an increase in demand. These industries use relatively more labor than nonservice industries.

b. Due to overfishing, there is a fall in the amount of fish caught per day by commercial fishers; this decrease affects their demand for workers.

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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