MARCH 22, 2012
What was the impact on the supply and demand of labor on one sector of the labor market? The impact on supply and demand was critical in the Luddite revolt. It all begins in 1779 when the failure of a Bill to regulate the frame-knitting industry had resulted in 300 frames being smashed and thrown into the streets. This is where the shortage of the supply begins. Then, by 1810 the Orders in Council and a change in fashion had led to deterioration in the standard of craftsmanship required in stocking making and a consequent cheapening of the trade. It was the attempt to intimidate some masters who brought in the new machines that caused Nottingham stocking knitters to smash the machines. (http://www.victorianweb.org/history/riots/luddites.html)
Then the impact on the demand of Stocking knitting became predominantly a domestic industry, the stockier renting his frame from the Master and working in his own 'shop' using thread given to him by the Master; the finished items were handed back to the Master to sell. The frames were therefore scattered round the villages; this cause the demand to increase it then became easy for the Luddites to smash a frame and then disappear. Between March 1811 and February 1812 the supply of frames had been affected. About a thousand machines at the cost of between 6,000 and 10,000 were smashed. This had a damaging impact on the supply and demand (http://www.victorianweb.org/history/riots/luddites.html) Explain the factors that affected labor demand and labor supply in the chosen historical example. The Factor that affected the labor demand and labor supply in the Luddite revolt was the attacks of the Luddites and the Nottingham. The fact that they did such damage to the machines, that industry was set back. The labor demand could have possibly been greater had there not been a thousand machines at the cost of between 6,000 and 10,000 affected....