Q1

1. How changes in the goods market affect the demand for labor In this question, you'll explore the effect of a change in demand for raspberries in the United States on the daily wages of raspberry pickers in Oregon. Assume that a new, healthier synthetic flavoring is invented that tastes the same as raspberries but is considerably cheaper for manufacturers to use in products to get the raspberry flavoring without using real raspberries. On the following graph, show the effect of the new, healthier synthetic flavoring on the market for raspberries in the United States by shifting either the demand curve, the supply curve, or both. Market for Raspberries in the United States 20 O 18 Supply 16 Demand 14 12 Supply 10 PRICE (Dollars per quart) Demand A 2 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Millions of quarts of raspberries)Based on the graph for the market for raspberries in the United States, the new, healthier synthetic flavoring has caused the price of raspberries in the United States to V . The following graph shows the daily market for raspberry pickers in Oregon. Show the effect of the new, healthier synthetic avoring on the market for raspberry pickers in Oregon by shifting either the demand curve, the supply curve, or both. Market for Raspberry Pickers in Oregon 1: e _ O 3 _ (I) Q. E 2 5 Q \"J '2 ; -----+ LABOR (Thousands of workers) In the daily market for raspberry pickers in Oregon, the wage level for raspberry pickers in Oregon V . One factor that affects the elasticity of demand for labor is the elasticity of demand for the product itself. The higher the price elasticity of demand for a product, the V the elasticity of demand for labor. The year is 2057. In many occupations, robots are replacing humans. As it turns out, robots make very good engineers but very poor ski instructors. Assuming the other determinants of demand for the two services are roughly similar, you would expect the demand for human ski instructors to be V the demand for human engineers