Draw the graph · Micro · Labor market
Robots enter the warehouse
Drag a curve sideways, or use its arrows. A curve you do not move is a curve you are saying stays put. Make each shift clear enough that a reader could see it.
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Labor demand shifts left. Labor supply stays put.
Firms demand workers for what they add to output. When robots can do the same tasks, each worker adds less to the firm, so firms want fewer pickers at every wage. Labor demand shifts left. Labor supply is unchanged. The lower wage moves some workers out of the market along their supply curve.
The wage falls and employment falls.
Common mistake. Some students shift labor supply left because 'workers lose their jobs.' Losing jobs is the result. What changed is how much firms value a worker, and that is labor demand.
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