In the short‑run specific‑factors model, consider a decrease in the stock of land. For example, suppose a natural disaster decreases the quantity of arable land used for planting crops. Round values to the nearest one-half unit. a. Demonstrate a change in the supply of land on the accompanying graph. b. New equilibrium wage is? c. New quantity of agricultural labor is?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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In the short‑run specific‑factors model, consider a decrease in the stock of land. For example, suppose a natural disaster decreases the quantity of arable land used for planting crops. Round values to the nearest one-half unit. a. Demonstrate a change in the supply of land on the accompanying graph. b. New equilibrium wage is? c. New quantity of agricultural labor is?
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19
P. MPL
A
18
17
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15
|4
13
12
|1
| 0
8
7
4
3
P MP
M
1
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Labor
Transcribed Image Text:20 19 P. MPL A 18 17 16 15 |4 13 12 |1 | 0 8 7 4 3 P MP M 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Labor
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