A coastal region has a labour market for offshore maintenance technicians. The number of offshore maintenance contracts falls. During the same period, many technicians retire.
| Hourly wage | Labour demanded before the changes | Labour supplied before the changes | Labour demanded after the changes | Labour supplied after the changes |
|---|---|---|---|---|
| £22 | 240 workers | 160 workers | 180 workers | 70 workers |
| £24 | 200 workers | 200 workers | 155 workers | 100 workers |
| £26 | 160 workers | 240 workers | 130 workers | 130 workers |
| £28 | 120 workers | 280 workers | 105 workers | 160 workers |
Calculate the change in the equilibrium hourly wage and the change in equilibrium employment after the changes.
Explain the change in the equilibrium hourly wage shown by the data.
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.