could some explain what will happen from a supply/demand side if factory that makes pens and the demand for the pens decline, and there are more people willing to work due to a recession.

Take a shot, what do you think.

Start with a simple supply/demand diagram then shift the curves as you think. e.g., closing a factory would shift the supply curve inward.

the demand would shift inward due to the decrease in demand, but i was alos thinking that more workers would increase the supply

correct?

If wages are flexible downward, I agree. More willing workers means the factory can employ all the workers it needs at a lower wage rate.

Sure, I can explain what will happen from a supply/demand side if the demand for pens declines and there is an increase in the workforce due to a recession.

1. Demand for Pens Declines: When the demand for pens decreases, it means that fewer people are willing to buy pens at the existing market price. This can be due to various reasons such as changes in consumer preferences or the availability of alternative writing tools like digital devices. As a result, the demand curve for pens shifts leftward, indicating a decrease in demand.

2. Supply Side Effects: Since the factory produces pens, a decline in demand will affect the supply of pens in the market. In response to the reduced demand, the factory may need to adjust its production levels. It can either decrease production by reducing the number of working hours, laying off some employees, or shutting down some production lines. This decrease in supply is an attempt by the factory to align its production levels with the reduced demand.

3. Increase in Workforce due to Recession: During a recession, job opportunities often become scarce, and more people are willing to work. This can increase the available labor force willing to work in the factory that makes pens. As a result, the supply of labor increases.

4. Labor Market Effects: With an increase in the labor supply, the labor market becomes more competitive. To secure a job, individuals may be willing to work for lower wages or be more flexible in the working conditions. This can potentially lead to a decrease in labor costs for the factory.

In summary, the combination of declining demand for pens and an increase in the labor force due to a recession will likely result in a decrease in the supply of pens as the factory adjusts its production levels. Meanwhile, the increase in the labor supply can create a more competitive labor market, potentially leading to lower labor costs for the factory.