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In this question, you\'ll explore the effect of a plentiful crop in Quebec on th

ID: 2496430 • Letter: I

Question

In this question, you'll explore the effect of a plentiful crop in Quebec on the daily wages of blueberry pickers in New Brunswick. Assume that blueberry buyers don't care whether their blueberries come from Quebec or New Brunswick. , which is A plentiful crop in Quebec causes the illustrated by a blueberries in Canada to shift of the curve. Show the effect of this shift on the following graph. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move the curve and it snaps back to its original position, just try again and drag it a little farther.

Explanation / Answer

Plentiful of crop causes supply to increase. This shifts the supply curve to right.

Thus price of blueberries in Canada decreases, from 6 to 4.

With fall in price owners will hire less labor as less amount of money is received now with each blue berry.

The demand for blueberry pickers’ fall. The wage falls as demand shift leftwards

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