Download the App!
Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.
Question
Answered step-by-step
Show the effect of each of the following events on the market for labor in the computer manufacturingindustry.a. Congress buys personal computers for all U.S. college students.b. More college students major in engineering and computer science.c. Computer firms build new manufacturing plants.
Video Answer
Solved by verified expert
This problem has been solved!
Try Numerade free for 7 days
Like
Report
Official textbook answer
Video by Kaylee Mcclellan
Numerade Educator
This textbook answer is only visible when subscribed! Please subscribe to view the answer
04:54
Yi Chun Lin
No Related Courses
Chapter 18
The Markets for the Factors of Production
The Economics of Labor Markets
Firm Behavior and the Organization of Industry
How Markets Work
03:05
Show the effect of each of…
01:12
02:49
Using supply-and-demand di…
03:31
Explain the influence of e…
03:36
Explain whether each of th…
this example, we are working with the labor market in the computer manufacturing industry, were given three different scenarios, and we want to showcase the impact on this labor market for each one. So let's start with part A. And we're told that the computers that computers for all college students are purchased by Congress. So this is telling us is that more computers are going to need to be produced. And in order to produce those computers, we're going to need more people to actually manufacture them, meaning that within this labor market in the computer manufacturing industry, we're going to see an increase in the demand for labor so that they can keep up with this new demand for computers. So we see our equilibrium shift from Q. note for quantity to Q1, and we see our wages increase over here. So we're seeing an increase in both our wages and in our quantities. Alright. Part B here is saying that there is an increase in engineering and computer science students. So because there's been this increase in the students, what we know is that there is now going to be more people entering this industry, more employees, more people who are working more workers. So we're going to see an increase in the supply within the labour market for the computer manufacturing industry. So supply is going to increase, which means that our new equilibrium gives us a higher quantity but lower wages. Alright. Part C here is saying that these computer manufacturing firms are building new computer manufacturing plants. So with this there are two potential options. So because they have these new plants, they may need more workers in order to manufacture their say their increased computers that they're going to be putting out. So we may see an increase in the demand for these workers within the labour market, which would give us an increase in our quantity and an increase in our wages. However, what we don't know about these plants is whether or not they actually are going to need more people to produce. Maybe there's been new, some technology advancement, and maybe a lot of these new plants are going to be operated more automatically more mechanically, rather than by individual workers. So in that case, we could possibly see a decrease in the demand. So we can't know for certain in which direction demand is going to move. So we could see an increase in the quantity and an increase in our wages. Or we could see a decrease in our quantity and a decrease in our wages. We can't know for certain.
View More Answers From This Book
Find Another Textbook
