In Chapter 3, we listed six important demand shifters. Since the demand for labor is like the demand for any other good, those same factors apply here. Let’s look at factors that might shift the demand for janitors at the McDonald’s we discussed.
For each of the following cases, state whether labor demand will rise or fall, and also state which of the six factors seems to be causing the shift in demand.
a. A new junior high school opens up across the street from the McDonald’s.
b. Customers become much more concerned about clean restaurants: They’ll walk out if there’s dirt on the floor.
c. As robots like the Roomba vacuum cleaner become cheaper, the McDonald’s buys some robots to do half of the janitors’ work.