b. Use the figure below to explain the impacts of a earning that is below the equilibrium earnings of$40,000 will have on the Alaskan Labor Market and Construction of the Oil Pipeline?LaborEarnings20,00035,00050,000Labor market equilibrium point

Equilibrium refers to the point where demand is equal to the supply

Answered: b. Use the figure below to explain the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Maria can work up to 40 hours per week at Sparkle, one of many competitive firms that make and sell hand-crafted jewelry and pay $25 per hour. The budget constraint below shows the tradeoff that she faces in terms of earnings versus leisure each week. S earnings $1,000 Maria's weekly budget constraint 40 leisure (hours) A. In an effort to raise revenues, the government is considering raising income taxes on workers like Maria. How would a higher tax change Maria's budget constraint? a. The budget constraint would be unchanged. altr b. The slope would be unchanged but the line will shift out. c. The slope would be unchanged but the line will shift in. d. The slope would become steeper. e. The slope would become flatter. Explain your reasoning for part A (above) using economic concepts:
2. Minimum wage legislation The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis. 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 Graph Input Tool Market for Labor in the Fast Food Industry Wage 6 (Dollars per hour) 16 Supply 14 Labor Demanded (Hundreds of workers) 630 Labor Supplied (Hundreds of workers) 0 12 10 2 2 0 10 0 ° Demand 90 180 270 360 450 540 630 720 810 900 LABOR (Hundreds of workers) In this market, the equilibrium wage is $ per hour, and the equilibrium quantity of labor is Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a hundred workers. For each of the wages listed in the following table, determine the…
14. The figure shows the supply and demand for labor in the textile industry. In each of the following scenarios, identify the direction of the shift in either the supply or demand curve and state whether the resulting equilibrium wage and quantity increase or decrease. What are the original equilibrium wage and quantity? Immigration and layoffs from other jobs increase the population of textile workers. A new technology for making self-printed T-shirts reduces the marginal product of labor for textile workers.
The height of the supply curve (S) measures D the cost to taxpayers of drafting a worker. the value to the maitary of drafting a worker. the difference between the cost to the taxpyer and the cost to the military of drafting a worker. the opportunity coss of a potential draftee.
5. Consider the market for labor. When you draw a supply and demand curve, what group of people represent “supply”? Explain.
The diagram below shows the supply and demand curves for some product somewhere. price per unit (P) 260 240 220 200 180 160 140 120 100 80 60 40 20 S₁ D₁ 0 0 50 100 150 200 250 300 350 400 450 500 550 600 number of units (Q) If the wages of workers producing this product were to decrease leading to a change of 150, then the new equilibrium price and quantity traded would be $ and units. Hint: wages is a cost to the firm.
E2
In Akron, 150 people are willing to spend an hour working as yoga instructors for an hourly wage of $10. For each additional $5 that the wage increases above $10, an additional 50 people are willing to spend an hour working. For hourly wages of $10, $15, $20, $25, and $30, plot the daily labor supply curve for yoga instructors on the following graph. 50 45 40 35 & WAGE (Dollars per hour) 20 15 10 5 0 0 50 100 150 200 250 300 350 LABOR (Number of workers) 400 450 500 Supply What is one explanation for why this labor supply curve is upward sloping? Wages have to increase to accommodate union pressure. Unemployment benefits are steadily declining. The opportunity cost of leisure decreases as wages decrease. People prefer to spend time doing leisure activities rather than working. ?
11. Describe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.
to finance a new health insurance program, the government of Millonia imposes a new $2-per-hour payroll tax to be paid by employers. What do you expect to happen to wages and the size of the workforce? Explain How will this answer change in markets where labor is inelastically demanded? Explain
(c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this? (d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers. (e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.
A firm's resource input, total output of labor, and product price schedules are given in the table. If labor is the only variable input, how much labor should the firm employ if the wage rate is $15 per day? Units of Labor Total Output/Day 20 30 2 3 4 5 6 7 * 3 units *4 units *5 units *6 units 38 46 54 62 Price of Good ($) $10 9 8 7 6 5

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b. Use the figure below to explain the impacts of a earning that is below the equilibrium earnings of $40,000 will have on the Alaskan Labor Market and Construction of the Oil Pipeline? Labor Earnings 20,000 X 35,000 50,000 Labor market equilibrium point