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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FIGURE 20.9 Chapter Checkpoint Assignable Problems 5, 6 Wage rate (dollars per hour) LS elevator 35 30 25 20 15 10 5 0 20 40 LS aircraft X LD elevator 60 LD aircraft 80 100 120 140 160 Labor (thousands of workers)