1. Many actors and artists who live in New York City also work in New York City restaurants and stores. Many actors and artists who left New York City during the height of the COVID-19 pandemic are now returning to the city.

What do you think this has done to the supply curve for labor for NYC restaurants and stores?

What do you think this has done to the wage of workers at NYC restaurants and stores and the number of hours that workers are hired to work?

Explain in words and graphically.

Hint: Keep the analysis simple and do not consider factors beyond what is mentioned in the problem. We will complicate things as we get further into the course!

Hint: In the labor market it is the workers who are the suppliers of labor, and it is the businesses/employers who are the demanders of labor. The labor market is unusual because when you think about factors that shift the supply curve for labor you think about how a change in the economy affects how many hours people are willing to work at a given wage.