Answer to Question #307417 in Microeconomics for Flavu

Question

Draw a diagram showing the effects of a decrease in the wage rate of bricklayers on the equilibrium market price and output in the annual market for new houses in France.

Answer 1

A decrease in the wage rate of bricklayers makes employers more likely to hire a larger number of workers. This causes an increase in the quantity of labor demanded, resulting in a shift in the demand curve to the right.