14. The figure shows the supply and demand for labor in the textile industry. In each of the following scenarios, identify the direction of the shift in either the supply or demand curve and state whether the resulting equilibrium wage and quantity increase or decrease.What are the original equilibrium wage and quantity?Immigration and layoffs from other jobs increase the population of textile workers.A new technology for making self-printed T-shirts reduces the marginal product of labor for textile workers. The graph illustrates the supply and demand for textile workers, with wages measured in thousands of dollars on the vertical axis and the number of textile workers measured in thousands on the horizontal axis.- **Demand Curve (D):** This downward-sloping curve represents the demand for textile workers. It begins at 100,000 workers at a wage level of $0 and decreases to 0 workers at a $80,000 wage.- **Supply Curve (S):** This upward-sloping curve represents the supply of textile workers. It starts at 0 workers when the wage is $0 and increases to 100,000 workers at an $80,000 wage.- **Equilibrium Point:** The intersection of the supply (S) and demand (D) curves reflects the market equilibrium. At this point, the number of textile workers is 75,000 and the wage is $50,000. This equilibrium indicates the wage rate and number of workers where the quantity supplied equals the quantity demanded in the textile industry, ensuring a balanced labor market.

Equilibrium in labor market is where the labor demand curve equals the labor supply curve. The…

Answered: 14. The figure shows the supply and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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14. The figure shows the supply and demand for labor in the textile industry. In each of the following scenarios, identify the direction of the shift in either the supply or demand curve and state whether the resulting equilibrium wage and quantity increase or decrease.

What are the original equilibrium wage and quantity?
Immigration and layoffs from other jobs increase the population of textile workers.
A new technology for making self-printed T-shirts reduces the marginal product of labor for textile workers.

The graph illustrates the supply and demand for textile workers, with wages measured in thousands of dollars on the vertical axis and the number of textile workers measured in thousands on the horizontal axis.

- **Demand Curve (D):** This downward-sloping curve represents the demand for textile workers. It begins at 100,000 workers at a wage level of $0 and decreases to 0 workers at a $80,000 wage.

- **Supply Curve (S):** This upward-sloping curve represents the supply of textile workers. It starts at 0 workers when the wage is $0 and increases to 100,000 workers at an $80,000 wage.

- **Equilibrium Point:** The intersection of the supply (S) and demand (D) curves reflects the market equilibrium. At this point, the number of textile workers is 75,000 and the wage is $50,000.

This equilibrium indicates the wage rate and number of workers where the quantity supplied equals the quantity demanded in the textile industry, ensuring a balanced labor market.

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