Question

Describe how each of the following events would affect​ (1) demand for construction workers and​ (2) construction wages in​ Portland, Oregon. Illustrate with supply and demand curves. The economy of the area booms. Office rents rise​, increasing demand for new office space. ​1.) Using the line drawing tool​, illustrate how this affects the labor market for construction workers. Label this line.

Answer 1

If the economy of Portland is booming, and demand for office space rises, then, the demand for construction workers will also rise, causing the demand curve to shift to the right.

If the supply of workers does not meet demand, then, wages will rise, this will make the demand curve more steep.