Chapter 69, Problem 2CYU

a)

To determine

Whether the demand curve for labor shift to the right, left, or remain unchanged when service industries experience an increase in demand and are relatively more labor than nonservice industries.

Answer to Problem 2CYU

The demand curve for labor would shift to the right when service industries experience an increase in demand

Explanation of Solution

When service industries experience an increase in demand and are relatively more labor than nonservice industries, the demand curve for labor would shift to the right because the industries are labor focused. And, an increase in the number of firms that are labor intensive will increase the demand for labor in the market, which is responsible to shift the demand curve for labor to the right.

Economics Concept Introduction

Introduction: A demand curve is a graphical representation that shows how sensitive demand is toward the price of a good or service.

Supply is the availability of goods and services in the market.

b)

To determine

Whether the demand curve for fishers in state M shift to the right, left, or remains unchanged when there is a decrease in the number of fish caught per day by commercial fishers in the state M and the price of fish is unaffected due to growing supply elsewhere.

Answer to Problem 2CYU

The demand curve for fishers would shift to the left when there is a decrease in the number of fish caught per day by commercial fishers in the state M.

Explanation of Solution

When there is a decrease in the number of fish caught per day by commercial fishers in the state M and the price of fish is unaffected due to growing supply elsewhere then, the demand curve for fishers in state M would shift to the left because the price of fish is unchanged and decrease in the supply of fish would result in a decrease in the number of fishermen.

Economics Concept Introduction

Introduction: A demand curve is a graphical representation that shows how sensitive demand is toward the price of a good or service.

Labor is the human capital or human resource that is the factor of production for any firm.