00:01
So there's a whole lot of text here, but the way you do it is just to start off by drawing a market, right, every time.
00:06
So in the first case, i'm going to start by drawing a labor market, which is a relationship between the number of workers, l, and the wage.
00:14
Labor market is characterized by demand and supply, and now we have some news, right? so if wages in the retail industry increase, right? so let's try to trace this, right? wages in retail up.
00:30
What's that going to do? is that going to affect the supply, right? which is workers.
00:34
Workers supply labor.
00:36
Or is it affecting the firms that hire labor? well, it's going to affect the supply, right? workers are going to leave for retail jobs because they can get higher workers there.
00:53
And so supply falls, right? supply is going to be reduced.
00:58
There are fewer workers available because they're leaving for the now higher paying retail jobs, we're going to get a new equilibrium.
01:06
And that new equilibrium leads to a higher wage and to a lower quantity of labor employer.
01:15
And that's how i would apply the market to answer this question.
01:21
Similarly, for b, i'm going to do exactly the same thing...