Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesters known as "trunk, shake, and catch" pickers, which vigorously shake oranges from trees. If widely adopted, this will O decrease the supply of oranges, implying the output effect is greater than the substitution effect. decrease the demand for human orange pickers, implying the substitution effect is greater than the output effect. O increase the demand for oranges, implying the output effect is greater than the substitution effect. O decrease the demand for human orange pickers, implying the substitution effect is less than the output effect.

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Chapter1: Making Economics Decisions
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Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their
oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesters known as "trunk, shake, and catch" pickers, which
vigorously shake oranges from trees.
If widely adopted, this will
decrease the supply of oranges, implying the output effect is greater than the substitution effect.
decrease the demand for human orange pickers, implying the substitution effect is greater than the output effect.
increase the demand for oranges, implying the output effect is greater than the substitution effect.
decrease the demand for human orange pickers, implying the substitution effect is less than the output effect.
Transcribed Image Text:Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesters known as "trunk, shake, and catch" pickers, which vigorously shake oranges from trees. If widely adopted, this will decrease the supply of oranges, implying the output effect is greater than the substitution effect. decrease the demand for human orange pickers, implying the substitution effect is greater than the output effect. increase the demand for oranges, implying the output effect is greater than the substitution effect. decrease the demand for human orange pickers, implying the substitution effect is less than the output effect.
Wage Rate
Quantity of Labor
Multiple Choice
D₁
Refer to the above graph. What will shift D₁ to D₂?
A decrease in productivity
D₂
An increase in product demand
An increase in the price of complementary input
A decrease in the price of a substitute input (if the substitution effect is greater than the output effect)
Transcribed Image Text:Wage Rate Quantity of Labor Multiple Choice D₁ Refer to the above graph. What will shift D₁ to D₂? A decrease in productivity D₂ An increase in product demand An increase in the price of complementary input A decrease in the price of a substitute input (if the substitution effect is greater than the output effect)
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