An offshore wind farm is built off a coastal region. It increases firms' demand for underwater welding technicians to build and maintain its foundations, while the supply of these technicians is unchanged. Table 1 shows the number of technicians willing to work and the number firms wish to hire at different hourly wage rates, before and after the wind farm is built.
| Hourly wage | Labour supplied | Labour demanded before the wind farm | Labour demanded after the wind farm |
|---|---|---|---|
| £18 | 100 | 140 | 180 |
| £20 | 120 | 120 | 160 |
| £22 | 140 | 100 | 140 |
| £24 | 160 | 80 | 120 |
Using Table 1, explain the likely effect of the wind farm on this labour market.
149 exam-style questions on AQA GCSE Economics 1.5 Competitive and concentrated markets, covering 1.5.1a The range of market structures, 1.5.1b Distinguishing between market structures, 1.5.2a Characteristics of a competitive market, 1.5.2b How producers operate in competitive markets, 1.5.2c The economic impact of competition, 1.5.3a Characteristics of a non-competitive market, 1.5.3b How producers operate in non-competitive markets, 1.5.3c Monopoly and oligopoly, 1.5.4a The labour market and wage determination, and 1.5.4b Gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.