Answer to Question #126187 in Microeconomics for Amy

Question

Assume market equilibrium is at E1 at the intersection of D1 and S. Now the demand curve shifts from D1 to D2 on the graph. Identify any three factors that could result in this increase in the demand for truck drivers.

Answer 1

Factors that would lead to an increase in truck drivers are:

• Expectations about future demand for higher wages
• Changes in preferences of truck drivers to choose another company to seek employment or change of line of work
• A change in populations that lead to an increase in number of truck drivers: since wage decreases.