This preview shows page 1. Sign up to view the full content.
Unformatted text preview: tion of society’s
resources. 3. The labor market in the town of Bazra is perfectly competitive, and 10 percent of the labor force is employed in
the clothing industry.
(a) Assume that the clothing manufacturers close their plants in Bazra. Using a correctly labeled supply and
demand graph, predict the impact that closing these plants will have on each of the following.
(i) The wage rate and number of workers employed in Bazra
(ii) The number of workers in Bazra looking for work who cannot find employment at the wage rate you
identified in (i)
(b) After the clothing manufacturers closed their plants in Bazra, the town passes a law that establish...
View Full Document
This note was uploaded on 02/03/2014 for the course ECONOMIC 112 taught by Professor Van le during the Winter '12 term at American Internation College.
- Winter '12
- van le