Draw the graph · Micro · Labor market
Higher prices, more hiring
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 right. Labor supply stays put.
Labor demand is derived from the value of what workers produce. Each barrel now sells for twice as much, so each worker adds twice the revenue, and firms want more workers at every wage. Labor demand shifts right. Labor supply is unchanged. The higher wage draws more workers in along their supply curve.
The wage rises and employment rises.
Common mistake. Students sometimes shift labor supply right because 'workers flock to the oil fields.' They do, but only because the wage rose. The oil price moved demand first.
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Lesson: Marginal Revenue Product