Draw a market labor supply curve and a market labor demand curve. label them ls0 and ld0. draw a point at the market equilibrium. label it 1. now suppose a severe drought decreases labor productivity. draw a curve that shows the effect of this decrease in labor productivity. label it. draw a point at the new market equilibrium. label it 2.

Amanager of a store that sells and installs spas wants to prepare a forecast for january and june of next year. her forecasts are a combination of trend and seasonality. she uses the following equation to estimate the trend component of monthly demand: ft = 30+5t, where t = 1 in january of this year. seasonal relatives are 0.60 for january and 1.50 for june. what demands should she predict for january and june of next year