Suppose that in the market for U.S. meat packers, two things happen simultaneously: (1) Due to growth in less-developed countries, the demand for U.S. meat exports rises; and (2) Due to other job opportunities, fewer people find meat-packing an attractive job.
a. Which curve or curves in the labor market for meat packers would be affected by these changes?
b. If there were no other changes, could you predict the impact of these events on the equilibrium wage of meatpackers? On their equilibrium employment level? Explain.