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Labor market for low-skilled workers

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Using a graph showing a supply and demand curve for labor, show how each of the following labor markets (assumed to be competitive and initially in equilibrium) is affected by the change described. Be sure to label all parts of each graph.

b. Labor market for low-skilled workers.

Change: The 1996 federal welfare legislation requires that a much larger fraction of welfare recipients work than in the past.

d. Labor market for workers who completed college or more.

Change: The workplace becomes more computerized and technically sophisticated.

Use price elasticity to explain the following:

a. The price of gasoline is higher near the freeway than at a gas station two miles off the freeway.

b. Airline tickets are less expensive if purchased a month before you plan to fly than if purchased one day before you plan to fly.

Reference no: EM131369337

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