Assume that the information technology and consulting industries employ people with similar skills. Suppose a decrease in the demand for consultants leads to a fall in their wages, while the demand for computer analysts remains the same. The following graph shows the labor market for computer analysts in the United States. Show the effect of the fall in demand for consultants on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor supply curve, or both. WAGE LABOR Supply Demand Demand Supply ?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter30: The Labor Market
Section: Chapter Questions
Problem 14E
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Assume that the information technology and consulting industries employ people with similar skills. Suppose a decrease in the demand for consultants
leads to a fall in their wages, while the demand for computer analysts remains the same.
The following graph shows the labor market for computer analysts in the United States.
Show the effect of the fall in demand for consultants on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor
supply curve, or both.
WAGE
LABOR
Supply
Demand
Demand
Supply
?
Transcribed Image Text:Assume that the information technology and consulting industries employ people with similar skills. Suppose a decrease in the demand for consultants leads to a fall in their wages, while the demand for computer analysts remains the same. The following graph shows the labor market for computer analysts in the United States. Show the effect of the fall in demand for consultants on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor supply curve, or both. WAGE LABOR Supply Demand Demand Supply ?
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