ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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- Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the supply of this kind of labor decreases, we would expect which of the following regarding the equilibrium wage, W, and the equilibrium quantity of labor, L, employed? Group of answer choices a) a decrease in W and a decrease L b) a decrease in W and a decrease L c) an increase in W and a decrease L d) a decrease in W and no change in L e) increase in W and an increase in Larrow_forwardThe minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for labor, with the quantity of labor measured on the horizontal axis and the wage rate on the vertical axis, show the effect on the labor market of a minimum wage set above the equilibrium wage rate. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardCan you let me know if i got these correct. thanksarrow_forward
- Hello, can you assist me with all parts of this question and show how you did the work, please? Thank youarrow_forwardSuppose you run a business that specializes in producing graphic T-shirts, using labor as an input. Hourly wage ($) 24 22 8 Wage ($) 26 24- 22- Based on the table above, graph the labor supply and labor demand curves and identify the market equilibrium wage and quantity using the graph below. 20- Instructions: Use the line tools provided (Supply and Demand) to plot the labor supply and labor demand lines for wages of $8 and $24 (2 points per line). Use the point tool provided (E) to indicate market equilibrium wage and quantity. 18- 16- 14- 12- 10- A- 2 0 Quantity demanded 0 0 50 100 150 200 250 300 100 350 400 200 300 Quantity supplied 600 550 500 450 400 350 300 400 Hours worked reset 250 200 500 600 Supply Demand Earrow_forwardNote: 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 In this market, the equilibrium wage is $ 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) 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 ? 0 hundred workers.arrow_forward
- 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 $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?arrow_forwardSuppose the demand for skilled military personnel is given by the curve: L= 200-5W, where L is the labor demanded per day in thousands and w is the wage rate. Suppose the supply curve for skilled military personnel is given by L=5W. a. What is the equilibrium wage rate ($) and equilibrium for skilled military personnel (equilibrium quantity of labor)? b. Now suppose due to economic problems that the government imposes a wage ceiling of $16.00 on all skilled military personnel. How many skilled military personnel are demanded and how many are supplied?arrow_forwardon Employers field (initially set at zero dollars per nour) shirts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. 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 8 0 Supply 0 10 20 30 40 50 60 70 80 90 100 LABOR (Number of workers) Tax Proposal Demand D-Tax Levied on Employers (Dollars per hour) 2 0 1 Graph Input Tool Market for Laboratory Aides Wage (Dollars per hour) Labor Levied on Workers (Dollars per hour) 0 2 1 Demanded (Number of workers) Quantity Hired (Number of workers) Demand…arrow_forward
- this item is one question but has three partsarrow_forwardy. 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 ? 240arrow_forwardThe following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded. You will not be…arrow_forward
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