What are the implications for the supply curves facing the


Elasticity of Supply. Consider the application, Pubs and the Labor-Supply Curve, which suggests that workers switch jobs to get a bigger producer surplus. Consider two types of workers, janitors in a large city and radiology technicians in a medium-size city with two hospitals. (Related to Application 3 on page 715.)

a. Which type of worker is likely to get a larger change in producer surplus when switching jobs?

b. What are the implications for the supply curves facing the employers janitorial firms and hospitals?

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Econometrics: What are the implications for the supply curves facing the
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