Ask Question
21 January, 14:23

Assuming that the market for construction workers is perfectly competitive, illustrate graphically how each of the following would affect the demand or supply for construction workers. What would be the impact on wages and on the number of construction workers employed? a. The demand for new housing increases as more people move into the community. b. Changes in societal attitudes lead to more women wanting to work in construction. c. Improved training makes construction workers more productive. d. New technology allows much of the framing used in housing construction to be built by robots at a factory and then shipped to construction sites.

+1
Answers (1)
  1. 21 January, 14:31
    0
    A. The demand for new housing increases as more people move into the community. - This increases demand, increases the number of construction workers employed, and raises wages.

    B. Changes in societal attitudes lead to more women wanting to work in construction. - This increases the labor supply, because now women join men in the labor force. The increased supply of labor depresses wages.

    C. Improved training makes construction workers more productive. - This does not necessarily increase the demand for construction workers, or the supply of it. It raises productivity. Because real wages are equal to the marginal product of labor, the higher productivity means higher wages.

    D. New technology allows much of the framing used in housing construction to be built by robots at a factory and then shipped to construction sites. - This shifts the labor demand curve to the left because now companies are willing to hire less labor at any given price. The lesser demand means that wages are fall as well.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assuming that the market for construction workers is perfectly competitive, illustrate graphically how each of the following would affect ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers