v Demand for labor will shift down by $2. 24 Demand for labor will shift up by $2. " Demand for labor will not change. - There will be movement along the demand curve. Suppose workers consider two dollars of health insurance paid by firms to be the equivalent of $2 in wages. 9 * How will this law affect the supply curve of labor? g 2 + Supply of labor will not change. [ Supply of labor will shift up by $2. o v Supply of labor will shift down by $2. / There will be movement along the supply curve. 80 100 120 Labor Consider an industry where the equilibrium wage is $15 per hour and 100 workers are employed. How will this law affect the equilibrium quantity of labor in this labor market? How will it affect the equilibrium wage in this industry? 1.) Using the line drawing tool, illustrate the shifts that produce the labor market's new equilibrium. Properly label your curves. Carefully follow the instructions above and only draw the required objects