4. How changes in the goods market affect the demand for labor
In this question, you'll explore the effect of a drought in Pennsylvania on the price of strawberries in the United States, as well as on the daily wages
of strawberry pickers in California. Assume that strawberry buyers don't care whether their strawberries come from Pennsylvania or California.
On the following graph, show the effect the drought in Pennsylvania has on the market for strawberries in the United States by shifting the demand
curve, the supply curve, or both.
PRICE (Dollars per pound)
Supply
Demand
Demand
Supply
75 150 225 300 375 450 525 600 675 750
QUANTITY (Millions of pounds of strawberries)
Based on the graph for the market for strawberries in the United States, the drought has caused the price of strawberries in the United States to
The following graph shows the daily market for strawberry pickers in California.
Show the effect of the change in the price of strawberries in the United States on the market for strawberry pickers in California by shifting the
demand curve, the supply curve, or both.
WAGE (Dollars per worker)
Supply
Demand
Demand
Supply
LABOR (Thousands of workers)
As a result of the change in the price of strawberries, the wage level for strawberry pickers in California