The supply and demand for labor For each event described below: (1) State whether the demand...

The supply and demand for labor

For each event described below: (1) State whether the demand or the supply of labor will change, (2) Explain why the supply or demand for labor changed, (3) State what happens to the equilibrium wage and quantity of labor employed in the market. (4) Illustrate your answer with a graph. Assume that the market is perfectly competitive with a market wage of $20 per hour. Assume that each event occurs independently.

The demand for new housing increases as more people move into the community.
Changes in societal attitudes lead to more women wanting to work in construction.
Improved training makes construction workers more productive.
New technology allows much of the framing used in housing construction to be built by robots at a factory and then shipped to construction sites.
Construction workers unionize. The union is successful increasing wages above the equilibrium wage to $25 per hour.

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Expert Solution

Rahul Sunny answered 1 year ago

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