Labor Supply and Demand Scenario Custom Research

Area of EmploymentThe area of booking that will be used for this analysis is the real realm diligence more precisely, the specific job function that will be the origination for the analysis is the real estate agent. The hypothetical shift that will run the subsequent sections of this scenario is a high job growth rate.Why Has the cant over Occurred?The shift has occurred referable to an change magnitude train for real estate, which has led to an attachd direct for real estate agents to serve the needs of potential buyers. It should be noted, however, that this shift has emerged in the real estate industry due to the item that real estate presents an environment of perfect competition, whereby there are umpteen competitors who can freely pursue opportunities in a free grocery setting (Mankiw, 2004).Direction of Shift in boil Supply and guideIn a scenario that represents increased numbers of real estate agents due to additional potential buyers of real estate, there are several sparing factors at work. First, as demand for the product of real estate increases, so will the price of real estate, given a limited supply. Likewise, the demand for agents to sell the real estate will increase, and the cost of those agents (real wages) will increase while at the same time, the supply of agents will likely decrease. This is a demonstration of the neoclassical theory of distribution (Mankiw, 2004).Effect of the Scenario on Labor Market EquilibriumThe effect that this scenario will have on wear upon market equilibrium is that as the supply of available real estate agents decreases, the price of those agents (wages) will increase. This in turn may slow the demand for agents overall if lower priced alternatives are sought, such as less employees taking on more responsibility. This is a classic example of equilibrium in labor demand (Mankiw, 2004). References(Mankiw N G 2004 Principles of Economics)Mankiw, N. G. (2004). Principles of Economics (3rd ed.). Chi cago Thomson South-Western.