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Suppose a Shift of the Demand Curve for Strawberry Pickers

question 117

Essay

Suppose a shift of the demand curve for strawberry pickers causes the equilibrium wage of strawberry pickers to increase by $2. The price of strawberries is $3 per pound before and after the shift. Does the shift increase the marginal product of the last picker hired, or does it decrease it? What is the amount of the increase or decrease?


Definitions:

Chronic

Describing a health condition that is persistent or long-lasting in its effects.

Abate

To reduce in amount, degree, or severity; often used in the context of something undesirable.

Format

A structure or layout of data that specifies its arrangement and organization.

Rapport

A positive relationship characterized by mutual understanding, trust, and agreement between people.

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