A small city in Florida has a factory that employs over 20% of the adult workforce. It goes out of business throwing all those people out of work. You own the hardware store/lumber yard in town. What happens to demand for your store's goods when the unemployment rate spikes by 20% within a few days? Describe the adjustments to the market for hardware and building items would take place? How would that adjustment be different if the newly unemployed people received unemployment insurance? What is that?

A small city in Florida has a factory that employs over 20% of the adult workforce. It goes out of business throwing all those people out of work. You own the hardware store/lumber yard in town. What happens to demand for your store's goods when the unemployment rate spikes by 20% within a few days? Describe the adjustments to the market for hardware and building items would take place? How would that adjustment be different if the newly unemployed people received unemployment insurance? What is that?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Typed plaza and Asap thanks

A small city in Florida has a factory that employs over 20% of the adult workforce. It goes out of business throwing all
those people out of work. You own the hardware store/lumber yard in town.
What happens to demand for your store's goods when the unemployment rate spikes by 20% within a few days?
Describe the adjustments to the market for hardware and building items would take place? How would that adjustment
be different if the newly unemployed people received unemployment insurance?
What is that?

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Step 1: Identify market adjustment due to reduction in quantity

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Step 2: Identify the demand of the store with unemployment rise by 20% and adjustment made in the market.

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Step 3: Find possible change in the demand rate when employees receives unemployment benefit

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