The United States is increasingly outsourcing jobs to India: having the work done in India rather than in the United States. For example, the Indian firm Tata Consultancy Services, which provides information technology services, increased its work force by 70,000 workers in 2010 and expected to add 60,000 more in 2011 (“Outsourcing Firm Hiring 60,000 Workers in India,” San Francisco Chronicle, June 16, 2011). As a result of increased outsourcing, wages of some groups of Indian skilled workers have in-creased substantially over the years. Use a supply-and- demand diagram to explain this outcome.
Answer to relevant QuestionsIn Q& A 2.1, if the price of tomatoes rises to $ 1.80 per lb, what are the new equilibrium price and quantity for avocados?Humans who consume beef products made from diseased animal parts can develop mad cow disease (bovine spongiform encephalopathy, or BSE, a new variant of Creutzfeldt- Jakob disease), a deadly affliction that slowly eats holes ...If the minimum wage raises the market wage, w, but hours worked, L, fall as a result, total wage payments, wL, may rise or fall. Use supply and demand curves to show that either outcome is possible depending on the shapes ...When Apple raised the price of iTunes from 99¢ to $ 1.29, GS Boyz’s “ Stanky Legg” sales dropped from 22,686 units to 19,692 units (Glenn Peoples, “ iTunes Price Change: Sales Down, Revenue Up in Week 1,” ...Nataraj (2007) found that a 100% increase in the price of water for heavy users in Santa Cruz, California, caused the quantity of water they demanded to fall by an average of 20% (Mini- Case “Turning Off the Faucet”). ...
Post your question