A small city in Florida has a factory that employs over 20% of the adult workforce. It goes out of business throwing all those people out of work. You own the hardware store/lumber yard in town. What happens to demand for your store's goods when the unemployment rate spikes by 20% within a few days? Describe the adjustments to the market for hardware and building items would take place? How would that adjustment be different if the newly unemployed people received unemployment insurance? What is that?

A small city in Florida has a factory that employs over 20% of the adult workforce. It goes out of business throwing all those people out of work. You own the hardware store/lumber yard in town. What happens to demand for your store's goods when the unemployment rate spikes by 20% within a few days? Describe the adjustments to the market for hardware and building items would take place? How would that adjustment be different if the newly unemployed people received unemployment insurance? What is that?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 12QFR

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