1. Using the MES framework, show how a decrease in the demand for jeans will impact demand for workers who produce blue jeans. Hint: First think about how the change in demand for jeans will affect equilibrium prices of jeans.
2. Suppose I own a car company that uses both people and robots to produce cars.Recently, the cost of robots increased substantially.Using the MES framework, explain how the increased cost of robots will affect the number of people I hire.