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On a separate sheet of paper where you hand-draw, answer the following. Tan's Sandwich Shop will hire sandwich makers from a perfectly competitive labor market.

1. Draw correctly-labeled side by side graphs of supply and demand for the entire sandwich maker market as well as for Tan's Sandwich shop.

User Frenzy
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Basically, perfect competition represents a market scenario characterized by a multitude of buyers and sellers who produce identical or homogeneous products. The graph for the supply and demand for the entire sandwich maker market is drawn below.

In the Graph 1, the sandwich market reaches equilibrium at point E (equilibrium), where the quantity demanded for labor equals the quantity supplied of labor.

In Graph 2, an expansion in the supply of sandwich makers will result in an increased demand for workers involved in sandwich production.

Consequently, the demand for labor will rise, leading to a rightward shift in the labor demand curve denoted as LD2. This shift will simultaneously increase both the equilibrium quantity of labor and labor wages to Q2 and w2, respectively.

Note: The drawn graph are attached as follows.

On a separate sheet of paper where you hand-draw, answer the following. Tan's Sandwich-example-1
On a separate sheet of paper where you hand-draw, answer the following. Tan's Sandwich-example-2
User Rinde
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