The below graph shows the optimal asking wage. Suppose the individual’s unemployment compensation benefits  are about to run out. Show the impact on the graph.  How will this affect the asking wage and the length of the job search?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The below graph shows the optimal asking wage. Suppose the individual’s unemployment compensation benefits  are about to run out. Show the impact on the graph.  How will this affect the asking wage and the length of the job search?

Dollars
W
MC
MR
Wage Offer
at Hand
Transcribed Image Text:Dollars W MC MR Wage Offer at Hand
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Thank you for the promptly response. My question is why would they demand a higher wage and lengthen their job search when they know their unemployment benefits will run out soon. My intution would be the person would lower their asking wage because they no longer have unemployment benefits and thus their job search would be shortened.

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