Suppose that the labour markets for warehousing staff and supermarket retail assistants are closely linked, as workers can easily transfer their skills between the two industries due to high occupational mobility.
A rapid expansion in e-commerce permanently shifts the demand curve for warehousing staff to the right. Refer to the diagrams below.
Which of the following describes the most likely interaction effect on the market for supermarket retail assistants?
A shift to the right in the supply curve of retail assistants (from S2S_2S2 to S1S_1S1), leading to a lower equilibrium wage rate and a higher equilibrium quantity of labour.
A shift to the left in the supply curve of retail assistants (from S1S_1S1 to S2S_2S2), leading to a higher equilibrium wage rate and a lower equilibrium quantity of labour.
A shift to the right in the demand curve for retail assistants, leading to a higher equilibrium wage rate and a higher equilibrium quantity of labour.
A shift to the left in the demand curve for retail assistants, leading to a lower equilibrium wage rate and a lower equilibrium quantity of labour.
