Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 18 - Part VI - The Markets for the Factors of Production - Problems and Applications - Page 391: 2

Answer

a) Please see the first graph. b) Please see the first graph. c) Please see the second graph.

Work Step by Step

a) With Congress buying more computers, more workers are needed. Thus, the demand curve shifts to the right. In turn, the equilibrium wage and quantity of workers both increase. b) With more students studying engineering and computer science, this is a technological change. Thus, the demand curve shifts to the right. In turn, the equilibrium wage and quantity of workers both increase. c) Computer firms making more computer plants shifts the supply curve to the right. Thus, the quantity of workers will increase, and the equilibrium wage will decrease.
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