Give a Few Examples of How Sectoral Shifts Temporarily Cause

question 270

Essay

Give a few examples of how sectoral shifts temporarily cause unemployment.

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Definitions:

Demand Curve

is a graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downsloping to indicate that lower prices increase demand.

Competitive Firm

A company that operates in a market with many competitors, facing a highly elastic demand curve for its product because many substitutes are available.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply in the market.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no profit or loss.