provide an isoquant/isocost analysis diagram explaining the possible impact of the higher wages on the output level, total cost of production and input-factor mix of this business in both the short and long-run estimated that the wage elasticity of labour demand is -1.7 and draw another isoquant/isocost analysis diagram and compare it provided that the long-run wage elasticity of labour demand was -0.4

Show diagrammatically how a labour supply curve can be backward bending, fully explaining using income and substitution effects. Explain why a researcher may choose to use Roy's Identity to derive estimable labour supply functions.

M d. The marginal product of labour is zero beyond 15 hours. Imagine that you work for 40 hours per week at the wage rate of £10 an hour. Your free hours are defined as the number of hours not spent in work per week, which in this case iS 24 hours x 7 days - 40 hours 128 hours per week Suppose now that your wage rate has increased by 100%. If you want to keep your total weekly income constant, then: Select one or more: Your total number of hours will fall by 25%. O a. O b. Your total number of hours will fall by 50%. You will work 25 hours per week. C. O d. Your free time will increase by 25%. 因 口 五 0 ASUS ZenBook

Show in schedule form and graphically the labor demand curve of this firm.