In a year, 130,000 aircraft mechanics and service technicians earned an average of $20 an hour whereas 30,000 elevator installers and repairers earned an average of $25 an hour. The skill and training for these two jobs are very similar. Draw the demand and supply curves for these two types of labor. What feature of your graph accounts for the
Chapter 20, Additional Problems and Applications #5
In a year, 130,000 aircraft mechanics and service technicians earned an average of $20 an hour whereas 30,000 elevator installers and repairers earned an average of $25 an hour. The skill and training for these two jobs are very similar.
Draw the demand and supply curves for these two types of labor. What feature of your graph accounts for the differences in the two wage rates and what feature accounts for the differences in the quantities employed of these two types of labor?
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Answer
Figure 20.9 shows the labor markets for aircraft mechanics and elevator installers. The wage rate pa…View the full answer
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