Answer to Question #137454 in Microeconomics for Jennifer

Question

How does the labour demand curve shift when the number of college and university graduate drops?

Answer 1

Changes in alternative opportunities: The supply of labor in one market de-

pends on the wage available in other markets. If the wage in alternative markets rises, workers will switch to the alternative markets, and supply of labor in the first market will shift to the left. Thi is why the labour demand curve shift when the number of college and university graduate drops?