Assume that the (equilibrium) wage in the labor market for low skilled workers is is $10/hour. The government’s goal is to help low paid families. Is a minimum wage of $15/hour likely to better achieve the government’s goal if the demand for labor is elastic or if it is inelastic? Provide diagram(s) to support your answer.
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Assume that the (equilibrium) wage in the labor market for low skilled
workers is is $10/hour. The government’s goal is to help low paid families. Is a minimum wage of
$15/hour likely to better achieve the government’s goal if the demand for labor is elastic or if it is
inelastic? Provide diagram(s) to support your answer.
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- Which effect is most associated with a shortage of laborwage (S/worker) Labor Supply 150 125 100 75 Labor Demand 50 25 25 50 75 100 125 150 labor (ths. workers/day)Provide a briefly explanation for the determination of wage. Support your explanation with and appropriate diagram. The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 14 + 2W a.Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?b.Suppose the town government imposes a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?
- This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. D2 D1 Refer to Figure . Which of the following is a possible explanation of the shift of the labor-demand curve from D1 to D2? Select one: a.Large segments of the population changed their tastes regarding leisure versus work. b.The wage earned by automobile workers increased. c.The opportunity cost of leisure, perceived by automobile workers, decreased. d.The price of automobiles increased.1. Is the price elasticity of demand for gasoline more INELASTIC over a shorter or a longer period of time? Explain. 2. Is the price elasticity of supply, in general, more INELASTIC over a shorter or a longer period of time? Explain. 3. Is the supply curve for labor usually upward sloping? ExplainV4. Suppose that you have the following information about the market for employees in your buisness: Supply: W=20+N Demand: W=40-N a. Suppose that the union negotiates a team size of only 5 employees. Draw this graphically and calculate the new equilibrium wage number of employees. b. Draw this graphically and calculate the equilibrium wage and number of employees hired.
- y. Minimum wage legislation The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 10 4 2 0 Supply Demand 0 60 120 180 240 300 360 420 480 540 600 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is $ Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Thousands of workers) and the equilibrium quantity of labor is 8 360 Labor Supplied (Thousands of workers) thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $8. This type of price control is called a ? 240Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 10 2 0 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 500 Labor Supplied (Hundreds of workers) ? 0Which of the following would increase the demand for labor? There’s an increase in the number of workers The price of the output good increases The substitution effect makes leisure more expensive as wages increase Leisure is a normal good and the income effect occurs when wages change
- Assume that the market for unskilled workers is perfectly competitive and that the demand for unskilled workers is relatively elastic. The government imposes a minimum wage in this market. Using a correctly labeled graph, show the following. a. The market wage rate paid to hired unskilled workers. b. The number of unskilled workers hired. c. The number of unskilled workers still looking for employment. Assume that unskilled workers are the primary source of labor in the agricultural industry, strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum wage law will affect the market for strawberries and identify the following. d. The price of strawberries. e. The quantity of strawberries.Which of the following is not correct? In a labor market, the wage adjusts to balance the supply and demand for labor. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. Any event that changes the supply or demand for labor must change the equilibrium wage. Any event that changes the supply or demand for labor must change the value of the marginal product.Consider an INCREASE in the wage (as demanded by the labor groups) to a higher level than the equilibrium price for labor. SHOW geometrically what will happen in the labor market. What problem(s) is/are likely to arise in the labor market?