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Suppose that the government places price controls on the market for college professors, imposing a wage that is lower than the market wage. Describe the effect of this policy on the production of college degrees. What sectors of the economy do you think would be adversely affected by this policy? What sectors of the economy might benefit?
Suppose service industries, such as retailing and banking, experience an increase in demand. These industries use relatively more labor than nonservice industries. Does the demand curve for labor shift to the right, shift to the left, or remain unchanged?
Suppose diminishing fish populations off the coast of Maine lead to policies restricting the use of the most productive types of nets in that area. The result is a decrease in the number of fish caught per day by commercial fishers in Maine. The price of fish is unaffected. Does the demand curve for fishers in Maine shift to the right, shift to the left, or remain unchanged?