Draw the graph · Micro · Labor market
Remote work widens the pool
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 stays put. Labor supply shifts right.
Remote hiring raises the number of people able to take the job. At every wage, more workers are willing and able to work for these firms, so labor supply shifts right. Labor demand is unchanged. The lower wage moves firms down along their demand curve, and they hire more.
The wage falls and employment rises.
Common mistake. A common error is to shift labor demand right because 'firms are hiring nationwide.' They are reaching more workers, not wanting more at each wage. The change is on the supply side.
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