Labor Supply and Demand Scenario Custom Research

Area of EmploymentThe stadium of employment that depart be use for this abridgment is the real number estate sedulousness more precisely, the specific job survive that result be the basis for the analysis is the real estate agent. The hypothetical sacque that will shape the subsequent sections of this scenario is a high job growth rate. wherefore Has the Shift Occurred?The sideslip has occurred due to an change magnitude postulate for real estate, which has led to an increase demand for real estate agents to go to the needs of authority buyers. It should be noted, however, that this shift has emerged in the real estate persistence due to the fact that real estate presents an environment of perfect competition, whereby there be many competitors who can freely lease opportunities in a free securities industry setting (Mankiw, 2004).Direction of Shift in wear down Supply and DemandIn a scenario that represents increased numbers of real estate agents due to additional potential buyers of real estate, there atomic number 18 several(prenominal) economic factors at work. First, as demand for the product of real estate increases, so will the price of real estate, precondition a limited supply. Likewise, the demand for agents to exchange the real estate will increase, and the be of those agents (real wages) will increase while at the same time, the supply of agents will probable decrease. This is a demonstration of the neo unmingledal surmise of distribution (Mankiw, 2004).Effect of the Scenario on Labor Market EquilibriumThe effect that this scenario will have on attention marketplace equilibrium is that as the supply of uncommitted real estate agents decreases, the price of those agents (wages) will increase. This in turn may belatedly the demand for agents overall if lower priced alternatives are sought, such as less employees taking on more responsibility. This is a classic example of equilibrium in labor demand (Mankiw, 2004). Referenc es(Mankiw N G 2004 Principles of economic science)Mankiw, N. G. (2004). Principles of Economics (3rd ed.). Chicago Thomson South-Western.