Answer Happy

Wage Labor supply Following the 2016 Major League Baseball season, the market home run hitters who were free agents and available to sign with any team was unexpectedly quiet. Players such as Edwin Encarnacion and Chris Carter signed for lower salaries, and for fewer years, than either they or their agents had expected. Here are two explanations for the relatively low salary offers: 1. Mark Shapiro, President and CEO of the Toronto Blue Jays explained: "There has been a shift...in how people value...defense and some of the other aspects of players' games." Wy e 1 2. Brian Cashman, General Manager of the New York Yankees, blamed the weak market on a greater-than-normal number of power hitters who were free agents: "the chessboard was set up with more participants than there were chairs." Source: Jared Diamond, "Home Runs Are No Longer Paying the Bills," Wall Street Journal, March 1, 2017. Labor demandy Draw two graphs depicting the demand and supply for home run hitters. In the first graph, illustrate a change in the market that is consistent with Mark Shapiro's explanation for the decline in salaries. LA Quantity of labor 1.) Using the line drawing tool, show the effect of Shapiro's theory by drawing either a new labor supply curve or a new labor demand curve. Label your curve either 'Labor supplyz' or 'Labor demand2.' 2.) Using the point drawing tool, identify the new market equilibrium wage and employment level. Label your point 'ez.' ! Carefully follow the instructions above and only draw the required objects.