Economics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280595
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 4, Problem 7DQ
To determine
Identify the suitable explanation for the given situation.
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Complete the following. Note that several factors are listed in the book. For each factor, be sure to tell how it will shift the curve.
Name some factors that can cause a shift in the demand curve in markets for goods and services.
Name some factors that can cause a shift in the supply curve in markets for goods and services.
Draw a graph of the market for U.S. labor. Label axes, curves, and equilibrium quantity and wages. (You do not have to use actual numbers) The supply of workers is highly, but not perfectly elastic. Make sure this elasticity is represented on your graph.
Then, draw, on a separate graph, what would happen to that market if there was an influx of immigrant workers who are complements of U.S. native workers.
The supply curve is upward sloping because
other things equal, a higher demand means greater quantity supplied.
other things equal, a higher income means greater quantity supplied.
other things equal, a lower wage means greater quantity supplied.
other things equal, a higher price means greater quantity supplied.
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Economics: Principles and Policy (MindTap Course List)
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