Commercial fishing businesses now plan to employ fewer deckhands at each wage rate. At the same time, more trained people are willing to work as deckhands at each wage rate. Before these changes, the market for deckhands cleared at £16 an hour with 400 deckhands employed. The table shows firms’ and workers’ plans after the changes.
| Hourly wage | Deckhands firms plan to employ | Deckhands willing to work |
|---|---|---|
| £13 | 450 | 350 |
| £14 | 400 | 400 |
| £15 | 350 | 450 |
| £16 | 300 | 500 |
Using the information in the table, explain how the changes affect the equilibrium wage and employment of deckhands.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.