As the Text Suggests, the Demand and Supply Model Predicts

question 35

Essay

As the text suggests, the demand and supply model predicts that the new computer and communications technologies will raise the pay of high-skill labor but reduce the pay of low-skill labor. Explain how this works using the four-step process.

---

Definitions:

Individual Behaviours

Actions or reactions of an individual, guided by personal reasons, motivations, or psychological processes.

Education

is the process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various forms of teaching, training, or research.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as an indicator of economic health.

Health Care

Maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of illness, injury, and other physical and mental impairments in people.