Suppose that the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for

Suppose that the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens to the market for autoworkers? Explain. Now, suppose that the automakers improve working conditions at the plants. What are the effects? Explain.

Join the Conversation

2 Comments

Leave a comment

Your email address will not be published.