Answer to Question #126569 in Microeconomics for Mpho

Question

Assume a market equilibrium is at E1 at the intersection of D1 and S.now the demand curve shift from D1 to D2 on the graph .identity any three factors that could result in this increase in the demand for truck drivers?

Answer 1

The factors that could result in the outward shift in the demand curve for truck drivers are;

1.Increased demand for goods and services

An increased demand of goods and services triggers a rise in both output prices and profitability.These improvements causes increased demand for workers (in this case drivers) to boost production so as to match-up the high demand for goods and services.

2.Increased number of Transport companies

An increased number of transport companies results to increased competition for drivers among these companies.This increased demand causes a rightward shift of the demand curve from D1 to D'2.

3.Education and Training

Properly trained drivers have a positive impact on productivity.These improvements in the levels of productivity triggers a rise in demand for drivers from that category.The high demand causes an outward shift of the demand curve from D1 to D'2.

References

https://opentextbc.ca/principlesofeconomics/chapter/4-1-demand-and-supply-at-work-in-labor-markets/