Suppose during the first year of the new administration seve

Suppose during the first year of the new administration, several events occur:

• Consumer demand for clothing increases

• OSHA rescinds costly worker safety regulations that had no impact on worker productivity in labor market for clothing production

• Prices for capital used in producing output in the clothing market fall

• Immigration of workers suitable for employment in the clothing market slows

• Wages in market X - which requires workers with the same traits and skills as workers in the clothing market – rise

• American students organize a boycott of clothing produced in foreign ‘sweat shops’.

Briefly explain the long-term effects each will have on both wages and employment levels in the domestic clothing labor market?

Solution

As consumer demand increases labour demand which is derived demand will rise and wages will rise

OSHA action will increase demand for labour and wage may rise

As price of capital falls labour demand decreases and wages will fall

As immigration slows demand for domestic labour will rise and so will wages

As wage rise in market X so will demand for labour rise and wages in cloth industry

Action of American students will raise demand for labour and wages

Can answer only 4 parts according to chegg policy but still answered more. Please please like answer