What is the resulting effect on the labor supply curve, wage, and quantity of workers?
Understand the Problem
The question is asking about the economic implications of shifts in the labor supply curve on wages and the quantity of workers. It presents multiple scenarios with varying effects on the labor supply and prompts us to analyze these effects.
Answer
Right shift: lower wages, more workers. Left shift: higher wages, fewer workers.
If the labor supply shifts to the right, wages may decrease and the quantity of workers increases. If it shifts to the left, wages increase and the quantity of workers decreases.
Answer for screen readers
If the labor supply shifts to the right, wages may decrease and the quantity of workers increases. If it shifts to the left, wages increase and the quantity of workers decreases.
More Information
The labor supply curve often slopes upward, meaning as wages go up, more workers are willing to work. Shifts in this curve can be due to factors like changes in population or worker preferences.
Sources
- Solved What is the resulting effect on the labor supply | Chegg.com - chegg.com
- Labor Supply Curve - (Principles of Economics) - Fiveable - library.fiveable.me
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