Suppose demand for labor is given by the equation Pp = 25 – 2Qp and supply for labor is given by the %3D equation Ps = 5 + 20s. Price is the hourly wage rate in dollars and quantity measures the number of %3D workers. Imposing a minimum wage of $17 by government will O create a labor surplus of 2 and firms will hire 5 workers. O create unemployment of 0 and firms will hire 4 workers. O create a labor shortage of 0 and firms will hire 5 workers. create unemployment of 2 and firms will hire 4 workers.

Suppose demand for labor is given by the equation Pp = 25 – 2Qp and supply for labor is given by the %3D equation Ps = 5 + 20s. Price is the hourly wage rate in dollars and quantity measures the number of %3D workers. Imposing a minimum wage of $17 by government will O create a labor surplus of 2 and firms will hire 5 workers. O create unemployment of 0 and firms will hire 4 workers. O create a labor shortage of 0 and firms will hire 5 workers. create unemployment of 2 and firms will hire 4 workers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the wage rate is above the equilibrium wage rate, the quantity of labor demanded is the quantity of labor supplied. O A. less than O B. equal to OC. greater than O D. the negative of O E. not comparable to
What would be the predicted impact on the labor market of a decrease in non-wage income, as well as an increase in the price of machines? a. An increase in equilibrium wage, and an indeterminate change in equilibrium quantity of labor. b. A decrease in equilibrium wage, and an indeterminate change in equilibrium quantity of labor. C. An indeterminate change in equilibrium wage, and an increase in equilibrium quantity of labor. O d. An indeterminate change in equilibrium wage, and a decrease in equilibrium quantity of labor.
7. What is most likely to occur if wages decrease from point Wes to a point below Wu? Use the graphic below. Oa) Families will continue as if nothing has occurred Ob) Families will feel constrained to send the children they already have to work (despite their age) c) Families will have more children without sending existing children to work Od) None of the above
D2)
5. Consider a perfectly competitive labor market in which a binding minimum wage is imposed. For this market, let ED represent the elasticity of labor demand and ES represent the elasticity of labor supply. In which of the following situations will the minimum wage be most beneficial to workers? O ED 1/2 and ES = 1/2 OED-1 and ES = 2 OED-2 and ES = 1 O ED=-3 and ES=1/4 ED=-4 and ES=4
At the current starting salary of $18,000 per year, the number of new business school graduates demanded is 100,000 a year and the number supplied is 120,000. Based on this information, you can conclude that Select one: O a. there's a shortage of new business school graduates in the market. O b. the equilibrium wage of business school graduates is more than $18,000 per year. the equilibrium wage of business school graduates is less than $18,000 per year. O d. the labor market for new business school graduates is in equilibrium.
Figure 3.2 Wage Rate ($ per day) 15 5. 0 20 Quantity of Labor O $15; 30 workers 5; 30 workers S₁ $5; 20 workers O $10; 40 workers D₁ 40 In Figure 3.2, assume that we have labor market demand and supply curves of D₂ and S₁, respectively. What is the equilibrium wage and employment level? S₂ D₂
In a perfectly competitive labor market, the worker will be paid: O Less than the value of his/her MRP. O Minimum wage. O More than the value of his/her MRP. O Exactly the value of his/her MRP.
Question 10 The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur? O There will be a decrease in the quantity of labor supplied by households. O There will be an increase in the quantity of labor demanded by firms. O There will be an increase in unemployment. O All of the above will occur.
27. help pls pls
The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur? Select one: a. There will be a decrease in the quantity of labor supplied by households. O b. There will be an increase in unemployment. O c. All of these will occur. O d. There will be an increase in the quantity of labor demanded by firms.
QUESTION 3 A determinant of the demand for labor is the: O a. quantity of labor supplied. b. price of labor. c. price of the product made with the labor. d. marginal cost of hiring labor. QUESTION 4 A lower wage: a. has an income effect but not a substitution effect on the quantity of labor supplied. b. means a higher income for any given level of labor supplied. c. has an income effect which is always negative with respect to the quantity of labor supplied. d. has an income effect which is always positive with respect to the quantity of labor supplied.