Draw the graph · Micro · Labor market
Training raises productivity
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.
Firms value a worker by the extra revenue that worker brings in. Higher output per hour at the same price means more revenue per worker, so firms want more operators at every wage. Labor demand shifts right. Supply is unchanged. The higher wage draws more people in along their supply curve.
The wage rises and employment rises.
Common mistake. Students sometimes shift labor supply right because 'trained workers enter the market.' The workers were already there. What changed is how much each one is worth to a firm, which is demand.
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