CASE STUDY

CASE STUDY PRODUCTIVITY AND WAGES One of the Ten Principles of Economics in Chapter I is that our standard of living depends on our ability to produce goods and services. We can now see how this principle works in the market for labor. In particular, our analysis of...

SHIFTS IN LABOR SUPPLY

SHIFTS IN LABOR SUPPLY Suppose that immigration increases the number of workers willing to pick apples. As Figure 5 shows, the supply of labor shifts to the right from SI to S2. At the initial wage WI’ the quantity of labor supplied now exceeds the quantity...