1- Traveling by airplane is becoming more and more an activity thatAmericans par

Question

1- Traveling by airplane is becoming more and more an activity thatAmericans partake of. Suppose that the demand for travel routesworldwide increased in the year of 2006. This would obviouslyrequire more pilots, stewardesses, and others that facilitate theair-travel experience. However, suppose at the same time thatseveral of the major airlines experienced a shortage of pilots dueto a strike. What would be the effects on wages within thismarket?

2- Following the same argument from the previous question, whatwould be the effects on the amount of workers present within themarket?

Explanation / Answer

1- There is an inverse relationship between wage and number ofworkers in the labor market. So if there is a decrease in amount ofworkers, there would be an increase in wage 2-With the rise in wage, there would be an increase in numberof people pursuing pilot as a career thus an increase in amount ofworkers. (Which will eventually balance out the increase inwage--equilibrium)

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