Consider the long-term labor supply curve for a city. For each of the following
ID: 1119113 • Letter: C
Question
Consider the long-term labor supply curve for a city. For each of the following events, say whether the labor supply curve shifts to the left, shifts to the right, or stays in place. Explain. a) The tuition of the local community college is raised. The labor supply curve O stays the same for jobs not requiring a college degree O shifts right for for jobs requiring a college degree. Oshifts right for jobs not requiring a college degree. O shifts left for jobs not requiring a college degree. b) The local wage increases. The labor supply curve Dshifts left. shifts right. stays the same. c) The minimum wage in a neighboring city is increased. The labor supply curve
Explanation / Answer
Answer (a) - The tuition of local community college is raised, the supply of labor curve shift to the right for jobs requiring a college degree. Student will learn a lot in their college life. Companies will demand high qualifications, The supply curve of labor will shift to the right for job which requiring a college degree.
Option B is the correct answer.
Answer (b) - If local wage rate change then supply curve will stay the same. Supply of labor will increase. There will be movement along labor supply curve.
Option C is the correct answer.