Draw the graph · Micro · Labor market
A wave of retirements
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 left.
The number of workers is a supply-side factor. With fewer electricians willing to work at every wage, labor supply shifts left. Labor demand has not changed. The higher wage moves contractors up along their demand curve, and they hire fewer.
The wage rises and employment falls.
Common mistake. Some students shift labor demand right because 'contractors are desperate for electricians.' Their demand curve is the same. The shortage of workers is a supply shift, and the higher wage is how the market responds.
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