Changes in Factor Demand and Supply Practice Test

In a competitive labor market for baristas, many workers leave the occupation for higher-paying jobs in another industry, reducing the number of workers willing to work as baristas at each wage. Based on the labor market graph shown, what happens to the equilibrium wage and quantity of labor?

In a competitive labor market for warehouse workers, a new immigration program increases the number of workers willing and able to work in the region. Based on the labor market graph shown, what happens to the equilibrium wage and quantity of labor?