Suppose recent changes to immigration laws have decreased the supply of immigrant labor, increasing wages in manual labor occupations. how might this affect the market for construction? in the figure to the right, show how the wage changes have likely affected the market for construction. using the line drawing tool, draw either a new supply curve (s2) or a new demand curve (d2). properly label your line. carefully follow the instructions above, and only draw the required object. click the graph, choose a tool in the palette and follow the instructions to create your graph.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?