Briefly analyze in terms of supply and demand the effects upon the given market of the following events. Are these changes a shift in the demand curve, a shift in the supply curve, a movement along the demand curve, or a movement along the supply curve? (More than one will apply. Be sure you understand why.) Explain briefly. Draw a graph.
20,000 workers move from Michigan’s Upper Peninsula to Wisconsin in order to take advantage of higher manufacturing wages in Wisconsin. (Discuss the effects in both labor markets, Michigan and Wisconsin. Think about why wages might initially be different in the two states. Hint: It is critically important that the migration is a response to a difference in wages.)
The deployment of troops from a particular military base reduces the local population by 10% overnight; within days 100 local barbers go out of business. (Discuss the local market for barbers.)
New regulations limit the amount of fish that can be caught off the coast of Maine, and 16 percent of professional fisherpersons wind up working in other industries.