Jacob Warren's Economics Blog

Dry cleaners are beginning to close down as the pandemic continues. Some trade groups expect by the end of the year that 30% of dry-cleaning businesses established before the pandemic will close. These dry-cleaning business owners fear that consumers may never return. 1.  What is causing the change in demand for dry cleaners? Knowing this what would we predict would happen to the price of remaining dry cleaning services? The pandemic. The prices would go down 2. What percentage of dry cleaners are expected to close by the end of this year? What would happen to the supply curve for dry cleaners if this many close? 30%. Shifts to the left, because supply decreased 3. What changes in business norms were already hurting the dry cleaning industry? Store owner's  U.S.-born children were choosing not to take over the family business, opting instead for white-collar fields. O ffices were loosening their norms for professional attire and lessening the need for professional cleaning. ...

The U.S. economy added 467,000 jobs in January despite the surge of the omicron variant. This caused the unemployment rate to increase from 3.9% to 4%, because more people were looking for work. Over the past 12 months, the US has added nearly 7 million jobs. Why does the article say that the unemployment rate increasing from 3.9% to 4% is a positive trend? Because more people are looking for work. Despite some positive news for the US economy, what problems is the economy facing? Closing schools, day cares and a number of businesses. What was wrong with the earlier estimates of job growth from reports in November and December? The job gains doubled what was predicted Which industries were the source of the largest numbers of new jobs? Why do you think those industries are improving? The leisure and hospitality sector. Restaurants and tourist areas are starting to open back up. How are unemployment rates different for white and black workers? The black employment rat...