Suppose the world price of steel rises substantially. The demand for labor among steel-producing firms in Pennsylvania will. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will. The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment.

a) The demand for labor among steel-producing firms in Pennsylvania will Fall

b) The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will Fall

Explanation:

Economy revive itself naturally. Therefore, whenever price of something rises, the demand for it gets regulated in a manner to bring its cost down. Now since the price of steel has risen, the consumption of steel will down due to which its production shall also fall down and once the production fall down the requirement of number of steel producing labor also falls down.