Increased Labor Demand and the Equilibrium Wage Essay

Increased Labor Demand and the Equilibrium Wage - try on ExampleFor example, in the given scenario, that the September 11th attacks on the United States altered the perceived need for a particular type of labor, to wit, security personnel, the germane(predicate) market shift is an increase in take up. Once the demand has increased, supply and demand are no longer balanced, and the market equilibrium is disrupted. To reset this balance, earnings and the value of marginal production must also increase to the point where stability is again achieved. Simply put, and assuming that supply remains unchanged, the greater the demand for a particular type of labor, the greater the marginal value of a particular workers product, and, thus, the greater must that workers wage be to achieve market equilibrium.It is coherent that the September 11th attacks created a greater demand for security personnel. Society became much more concerned with creating safe environments at locales such as airp orts, in airplanes, at events where large amounts of people congregate, and at globally-recognized structures.