Business, 25.11.2019 20:31, tryintopassenioryear

Suppose a hypothetical economy has only two industries and labor is the only input for both industries. workers are indifferent about which industry they work in and all workers are identical and able to move freely across the two industries. suppose that the outbreak of war leads to an increase in demand for the defense industry. a. adjust the labor market for defense graph to reflect the increase in demand. b. adjust the agriculture labor market graph and the defense labor market graph to find the new equilibrium wage. c. what is the new equilibrium wage (s/hour)?

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Suppose a hypothetical economy has only two industries and labor is the only input for both industri...