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In: Economics

A firm can either use their own employees to keep the office clean, or hire a...

A firm can either use their own employees to keep the office clean, or hire a cleaning service to do it. Assume that as businesses reopen during a global pandemic, health and safety regulations require more frequent cleanings for reopened business, while at the same time there is a decrease in the wages firm must pay for low and semi-skilled workers. What is the predicted effect of this on the price and quantity in the market for cleaning services?

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Expert Solution

Due to the most safety regulations in play, it is very important it for businesses to reopen during a global pandemic and also maintain safe so that more people are sceptical about out asking outsiders to come and clean and they are using their own employees to do it and the wages are far decreasedand this decreases the demand for cleaning services as a result of which the demand curve for cleaning services shifted to the left and this reduced the price and equilibrium quantity for the cleaning services on the whole

Rahul Sunny answered 2 years ago
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