Two Events Are Occurring Simultaneously in the Labor Market for Laborers

question 46

Essay

Two events are occurring simultaneously in the labor market for laborers who produce sports apparel.First,the government's campaign to increase the activity rate among its citizens is proving successful,and more people are going to the gym on a regular basis.Second,the sports apparel industry is known for its relatively high pay and good benefits,which are attractive to workers.
a.Graph the effect of each shift separately.Label the original equilibrium wage and quantity W₁ and L₁,respectively.
b.What needs to be true about the relative size of these shifts if workers in this labor market are to earn higher wages?

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Definitions:

Government Agencies

Public organizations at the local, state, or federal level that administer and enforce laws, regulations, and policies.

Corporate Level

Pertains to the highest strategic tier of business decisions and actions that affect the entire organization.

Strategy

A high-level plan to achieve one or more goals under conditions of uncertainty.

Strategic Business Unit Level

A semi-autonomous division or unit of a company that has its own strategy and direction while contributing to the overall success of the corporation.