Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 4

In the nation of Barronia,the market for construction workers is perfectly competitive. Explain what would happen to the equilibrium wage rate and equilibrium employment of construction workers under each of the following circumstances:
a. Young adults in Barronia begin to develop a taste for living in their own homes and apartments,instead of living with their parents until marriage.
b. Construction firms begin to use newly developed robots that perform many tasks formerly done by construction workers.
c. Because of a war in neighboring Erronia,Erronian construction workers flee across the border to Barronia.
d. There is an increased demand for automobiles in Barronia,and Barronian construction workers have the skills necessary to produce automobiles.
e. Tuition at trade schools that qualify Barronians for construction work become cheaper