The graph below shows the market for labor (coal miners). New coal-mining equipment is invente that is cheap and requires fewer workers to run. Demonstrate the effect this equipment has on th demand for coal miners. Provide your answer below: Wage Supply New Equilibrium Original Equilibrium Demand Quantity of Coal Miners

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The graph below shows the market for labor (coal miners). New coal-mining equipment is invented
that is cheap and requires fewer workers to run. Demonstrate the effect this equipment has on the
demand for coal miners.
Provide your answer below:
Wage
Supply
New Equilibrium
Original Equilibrium
Demand
Quantity of Coal Miners
Transcribed Image Text:The graph below shows the market for labor (coal miners). New coal-mining equipment is invented that is cheap and requires fewer workers to run. Demonstrate the effect this equipment has on the demand for coal miners. Provide your answer below: Wage Supply New Equilibrium Original Equilibrium Demand Quantity of Coal Miners
Expert Solution
Step 1

Demand curve is downward sloping and it shows an inverse relationship between price and quantity. Supply curve is upward sloping and it shows a positive relationship between price and quantity. At equilibrium, demand is equal to supply.

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