👉 Strikes, in economics and labor relations, refer to the cessation of work by employees as a form of collective action. Mathematically, the impact of strikes on production can be modeled using supply and demand principles. When a strike occurs, the labor supply decreases, leading to a reduction in the quantity of goods and services that can be produced. This decrease in supply, assuming demand remains constant, results in higher prices and lower quantities sold, as seen in the downward-sloping supply curve. The magnitude of this effect depends on factors like the duration and intensity of the strike, the elasticity of labor supply and demand, and the availability of alternative labor sources. Economists often use elasticity coefficients to quantify how sensitive the quantity demanded and supplied is to price changes, providing a more precise measure of the strike's economic impact.
