Question: Consider the market for labour. Using a supply and demand diagram, show the impacts of the following events on the market's equilibrium wage and labour
Consider the market for labour. Using a supply and demand diagram, show the impacts of the following events on the market's equilibrium wage and labour quantity.
(a) An increase in immigration.(10%)
(b) An infectious disease kills 30% of the workforce. (This historically happened due to the Black Death, a 14th Century plague which destroyed at leastone third of Europe's population)(10%)
(c) Workers gain skills that make them more productive.(hint:this does not affect the supply curve.)(10%)
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