Given a typical upward slopping labor supply curve in a particular labor market of insurance agents. How would the supply curve change if: Wage of paralegals decreases.
Upward sloping supply curve of insurance agents. If there is decrease in wages of paralegals who performs legal activities, they will change their employment industry type and try to enter in insurance firm in short run where agents comparatively earn higher salary. It will shift supply curve of insurance agents to its right while demand of agents remains the same, it will result in fall in real wages paid to agents in long run and make salary paid to paralegals and agents equal.
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