3. How changes in the market for output affect the demand for labor In this question, you'll explore the effect of a good weather season in Vermont on the price of blueberries in the United States, as well as on the daily wages of blueberry pickers in Florida. Assume that blueberry buyers don't care whether their blueberries come from Vermont or Florida. On the following graph, show the effect the good weather season in Vermont has on the market for blueberries in the United States by shifting either the demand curve, the supply curve, or both. Market for Blueberries in the United States 10 Supply Demand Supply Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of pints of blueberries) Based on the graph for the market for blueberries in the United States, the good season has caused the price of blueberries in the United States to The following graph shows the daily market for blueberry pickers in Florida. Show the effect of the change in the price of blueberries in the United States on the market for blueberry pickers in Florida by shifting either the demand curve, the supply curve, or both. (? Market for Blueberry Pickers in Florida Supply Demand Supply Demand LABOR (Thousands of workers) As a result of the change in the price of blueberries, the wage level for blueberry pickers in Florida WAGE (Dollars per worker) PRICE (Dollars per pint)

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**How Changes in the Market for Output Affect the Demand for Labor**

In this question, you'll explore the effect of a good weather season in Vermont on the price of blueberries in the United States, as well as on the daily wages of blueberry pickers in Florida. Assume that blueberry buyers don't care whether their blueberries come from Vermont or Florida.

**Graph Explanation:**

**1. Market for Blueberries in the United States**

- **Axes**: The vertical axis shows the "PRICE (Dollars per pint)," and the horizontal axis displays the "QUANTITY (Millions of pints of blueberries)."
- **Curves**: 
  - **Supply Curve (orange)**: Upward-sloping line indicating a positive relationship between price and quantity supplied.
  - **Demand Curve (blue)**: Downward-sloping line indicating a negative relationship between price and quantity demanded.
- **Shift**: Based on the graph, the good season has caused the supply curve to shift to the right (from the original position to the new position, increasing supply), resulting in a decrease in the equilibrium price of blueberries.

**2. Market for Blueberry Pickers in Florida**

- **Axes**: The vertical axis shows the "WAGE (Dollars per worker)," and the horizontal axis shows "LABOR (Thousands of workers)."
- **Curves**:
  - **Supply Curve (orange)**: Upward-sloping line showing a positive relationship between wage and labor supply.
  - **Demand Curve (blue)**: Downward-sloping line showing a negative relationship between wage and labor demand.
- **Interpretation**: As a result of the change in the price of blueberries, the demand curve for labor might shift, affecting the wage level for blueberry pickers in Florida. The graph illustrates the interaction of demand and supply affecting wages.

Fill in the blanks and analyze how these market changes influence labor demand and wages.
Transcribed Image Text:**How Changes in the Market for Output Affect the Demand for Labor** In this question, you'll explore the effect of a good weather season in Vermont on the price of blueberries in the United States, as well as on the daily wages of blueberry pickers in Florida. Assume that blueberry buyers don't care whether their blueberries come from Vermont or Florida. **Graph Explanation:** **1. Market for Blueberries in the United States** - **Axes**: The vertical axis shows the "PRICE (Dollars per pint)," and the horizontal axis displays the "QUANTITY (Millions of pints of blueberries)." - **Curves**: - **Supply Curve (orange)**: Upward-sloping line indicating a positive relationship between price and quantity supplied. - **Demand Curve (blue)**: Downward-sloping line indicating a negative relationship between price and quantity demanded. - **Shift**: Based on the graph, the good season has caused the supply curve to shift to the right (from the original position to the new position, increasing supply), resulting in a decrease in the equilibrium price of blueberries. **2. Market for Blueberry Pickers in Florida** - **Axes**: The vertical axis shows the "WAGE (Dollars per worker)," and the horizontal axis shows "LABOR (Thousands of workers)." - **Curves**: - **Supply Curve (orange)**: Upward-sloping line showing a positive relationship between wage and labor supply. - **Demand Curve (blue)**: Downward-sloping line showing a negative relationship between wage and labor demand. - **Interpretation**: As a result of the change in the price of blueberries, the demand curve for labor might shift, affecting the wage level for blueberry pickers in Florida. The graph illustrates the interaction of demand and supply affecting wages. Fill in the blanks and analyze how these market changes influence labor demand and wages.
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