1.Customer service jobs are easily outsourced. Graph the following for the market for customer service, and explain what happens to wages and the quantity of labor in each case.

a.What are the short-run effects of outsourcing on the home country?

b.What are the effects in the foreign country?

c.Who wins and loses in these moves?

2.Labor supply in the purchasing profession can be represented by the equation L_S=10+Wand labor demand as L_D=404W.

a.What is the equilibrium number of workers hired and their wage in this profession?

b.Other workers see that the number of good positions in their professions is shrinking, so workers shift into the purchasing profession, causing labor supply in purchasing to be two times what it used to be. What is the equilibrium number of workers hired now? What wage do they earn?

c.When will workers stop changing professions? Or will this process continue indefinitely?