You are given a scenario where this a change in a factor of production or a change in demand for an item. Explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written. Change in Factor of Production Effect on Labor Market Example: There is a decrease in the price of oil, and you make plastic containers. The decrease in the price of oil will make it cheaper to produce plastic containers. The firm can lower its price and it will sell more. This will increase the demand for labor at your firm. 1. Apple develops the iPhone and demand for it surges as people realize the benefits of this improved technology. You manufacture flip phones. 2. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double. 3. You develop a popular video game and continue to develop new versions to keep people interested in the game. 4. The coronavirus pandemic forces people to shelter in place. You are an airplane mechanic looking for work in Louisville where UPS is headquartered. 5. There is an increase in the price of steel. You make tractors.
You are given a scenario where this a change in a factor of production or a change in demand for an item. Explain in sentence form how this would change the demand for labor. See the example and model your answers after how the example is written.
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Change in Factor of Production |
Effect on Labor Market |
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Example: There is a decrease in the price of oil, and you make plastic containers. |
The decrease in the price of oil will make it cheaper to produce plastic containers. The firm can lower its price and it will sell more. This will increase the demand for labor at your firm. |
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1. Apple develops the iPhone and demand for it surges as people realize the benefits of this improved technology. You manufacture flip phones. |
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2. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double. |
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3. You develop a popular video game and continue to develop new versions to keep people interested in the game. |
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4. The coronavirus pandemic forces people to shelter in place. You are an airplane mechanic looking for work in Louisville where UPS is headquartered. |
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5. There is an increase in the price of steel. You make tractors. |
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