At one time, lawyers and paralegals generated an enormous amount of income by finding documents relevant to a lawsuit and reviewing their contents (a process called “discovery”). In the past few years, advances in artificial intelligence have led to the development of “e-discovery” software that can find and review documents at about 20 percent of the cost.29

a) Using supply and demand curves, show how this impacts the labor market for lawyers and paralegals.

b) Do you think that paralegals have specific or nonspecific human-capital skills? What about lawyers? Explain your answer.