1. Think of a goods and services market for coffee. A wild fire destroys half of the coffee bean crop. Which curve is affected and in what direction? What will happen to equilibrium, price and quantity in that market?
2. Think of a financial capital market for a stock. News comes out that this company is going to lose money in the upcoming quarter. Which curve is affected and in what direction? What will happen to the equilibrium wage and quantity of labor?
3. Think of a labor market for automakers. A new process on the line makes it necessary for the firm to add a few more workers on each shift. Which curve is affected and in what direction? What will happen to the equilibrium, wage and quantity of labor?
4. Think of a labor market for skilled workers. LCC starts a program called “Get a skill, get a job” which promises that at the end of training, you’ll get a job or your money back. Which curve is affected and in what direction? What will happen to the equilibrium wage and quantity of labor?