Question
In each of the following examples, show what happens on supply-demand diagram(s) of the particular labor market described, indicate what would happen to the equilibrium
In each of the following examples, show what happens on supply-demand diagram(s) of the particular labor market described, indicate what would happen to the equilibrium wage(s) and the equilibrium quantity(ies) of labor in that market(s), and briefly explain why.
a. The invention of computers and word processing programs enables authors to write books more quickly. Analyze the effect on the labor market for authors.
b. Suppose that low-skilled immigrants are complementary to high-skilled native U.S. workers in production (in other words, having lots of low-skilled workers around makes high-skilled workers more productive at what they do). The U.S. suddenly changes immigration policy to restrict low-skilled immigration. What happens in both the low and high-skilled labor markets in the U.S.?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started