The following scenario examines markets for factors of production, which include land and labor, used to produce wheat in Kansas in 1935. During this time period-known as the Dust Bowl-major dust storms caused residents of Kansas to migrate west to such states as California and Washington. It also made the land in Kansas much less useful for producing wheat. Using the example of the Dust Bowl, show the effects of these two changes on the market for labor in Kansas on the following graph. WAGE Market for Labor LABOR RENTAL PRICE Supply Demand From the graph, you can deduce that the migration of workers leads the equilibrium quantity of labor in Kansas to Market for Land Now consider the effect this change in the labor market has on the land market. In particular, think about the effects of the diminished productivity of land and the exodus of farm workers on the value of land in Kansas. LAND Assuming the supply of land is unchanged, illustrate these effects on the land market in Kansas on the following graph. Demand Supply Supply Demand Demand Supply

The following scenario examines markets for factors of production, which include land and labor, used to produce wheat in Kansas in 1935. During this time period-known as the Dust Bowl-major dust storms caused residents of Kansas to migrate west to such states as California and Washington. It also made the land in Kansas much less useful for producing wheat. Using the example of the Dust Bowl, show the effects of these two changes on the market for labor in Kansas on the following graph. WAGE Market for Labor LABOR RENTAL PRICE Supply Demand From the graph, you can deduce that the migration of workers leads the equilibrium quantity of labor in Kansas to Market for Land Now consider the effect this change in the labor market has on the land market. In particular, think about the effects of the diminished productivity of land and the exodus of farm workers on the value of land in Kansas. LAND Assuming the supply of land is unchanged, illustrate these effects on the land market in Kansas on the following graph. Demand Supply Supply Demand Demand Supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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