The diagram below shows the labor supply and demand curves for the firm JT Minn., who makes sofas. Suppose there is consumers interest in this product is increasing. Shift the appropriate curve in the correct direction to reflect the impact of this event on equilibrium in the labor market. Wage ($) (2400,$27) Labor Supply Labor Demand # of Workers

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: The Supply Of And Demand For Productive Resources
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The diagram below shows the labor supply and demand curves for the firm JT Minn., who makes sofas.
Suppose there is consumers interest in this product is increasing. Shift the appropriate curve in the correct direction to reflect
the impact of this event on equilibrium in the labor market.
Wage
($)
(2400,$27)
Labor Supply
Labor Demand
# of Workers
Transcribed Image Text:The diagram below shows the labor supply and demand curves for the firm JT Minn., who makes sofas. Suppose there is consumers interest in this product is increasing. Shift the appropriate curve in the correct direction to reflect the impact of this event on equilibrium in the labor market. Wage ($) (2400,$27) Labor Supply Labor Demand # of Workers
What was the effect of this event on the equilibrium wage?
OIncrease
ODecrease
ONo change
What was the effect of this event on equilibrium employment?
OIncrease
ODecrease
ONo change
Transcribed Image Text:What was the effect of this event on the equilibrium wage? OIncrease ODecrease ONo change What was the effect of this event on equilibrium employment? OIncrease ODecrease ONo change
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