Question

8. Assume that apple-pickers and peach-pickers have very similar skills. Suppose peach-pickers receive an increase in...

8. Assume that apple-pickers and peach-pickers have very similar skills. Suppose peach-pickers receive an increase in wage. What is the likely result for the labor supply in the apple-picking market?
A. The labor supply will rise in the apple-picking market.
B. Labor supply may fall or rise in the apple-picking market, depending on the price of apples.
C. The labor supply will stay constant until the wages paid to apple-pickers changes.
D. Market behavior will cause a decrease in supply of laborers in the apple-picking market.


9. Which of the following statements is (are) correct?
(x) If the demand curve for labor is downward sloping and the labor market experiences a surplus of labor, downward pressure on wages will cause the equilibrium wage to fall.
(y) A change in wage rate of nurses is a direct cause of a shift in the labor supply curve of nurses.
(z) The labor supply curve shifts when workers change the amount they want to work at any given wage.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

Homework Answers

Answer #1

8) 8) Solution: The labor supply will rise in the apple-picking market

Explanation: When wage in alternative markets increases, labor will switch to the alternative markets

9) Solution: (x) and (z) only

Explanation: A change in the wage rate results to a movement along the supply curve of labour. The supply curve of labor shifts if workers change the amount they are willing to work at any given wage. When in the market there is labor surplus it s downward pressure on wages

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