Ch9SGH 19.docx - Chapter 9 Study Guide Name:_Prd:_ 9.1 Key...

Chapter 9 Study Guide Name:____________________Prd:______
9.1
Key Terms:
Derived demand – The demand for a resource that arises from the demand for the product that
resource produces
Productivity – the value of output produced by a resource
equilibrium wage – the wage
resource substitutes – one resource can replace another in production; and increase in the cost of
one resource increases the demand for the other
Resource complements – one resource works with the other in production; a decrease in the cost
of one increases the demand for the other
Thinking Critically:
1. What is the demand for workers in your school cafeteria derived from?
2. Why would the demand for roofers increase if the price of shingles feel by 50%? 3. Why would an increase in the price of crude oil along a given supply curve increase the
quantity of oil supplied to the market?
4. What would happen to the demand for technicians who produce computer chips if a new
chip-manufacturing process using only half as much raw material was introduced?
5. Why might the supply of high-school students who are willing to work in fast-food
restaurants decrease if there were an economic boom and a huge increase in stock values?
Graphing Exercise:
6. Draw a labor supply curve for students who are willing to work, based on the data in the
table. Explain what would happen to the location of this labor supply curve as a result of
each of the listed events.

Chapter 9 Study Guide Name:____________________Prd:______
Likely shift to the left
b. Students would most likely stop getting jobs, thus causing the curve to shift to the
left
Hourly Wage Rate Quantity of Labor
Students Supply
$6 5,000
$7 10,000
$8 15,000
$9 20,000
$10 25,000
$6