The graph below shows the market for labor (coal miners). New coal-mining equipment is invented that is cheap and requires fewer workers to run. Demonstrate the effect this equipment has on the demand for coal miners. Provide your answer below: Wage Supply New Equilibrium Original Equilibrium Demand Quantity of Coal Miners

The graph below shows the market for labor (coal miners). New coal-mining equipment is invented that is cheap and requires fewer workers to run. Demonstrate the effect this equipment has on the demand for coal miners. Provide your answer below: Wage Supply New Equilibrium Original Equilibrium Demand Quantity of Coal Miners

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which one of the following statements is incorrect? a) Equilibrium in a perfectly competitive labour market occurs where the demand for labour is equal to the supply of labour. b) Equilibrium in a perfectly competitive labour market occurs where the quantity of labour demanded is equal to the quantity of labour supplied. c) Equilibrium in a perfectly competitive labour market is the result of the interaction between the demand for labour and the supply of labour. d) The individual supply of labour bends backwards when the income effect becomes stronger than the substitution effect.
The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply shifts to the right, if wages are flexible, B) labor supply shifts to the left, if wages are flexible. C) labor demand shifts to the left, if wages are flexible. D) labor demand shifts to the right, if wages are flexible.
Workers who produce good X were paid w = 2 dollars per hour. They form a union and negotiate a wage of w = 4 dollars per hour. Supply and demand in this market are given by Sx = 0.5px – w and Dx = 8 – 0.5px. Good X is a complement in consumption for good Y where Dy = 40 – 0.5py – px and Sy = 0.5py. Calculate the equilibrium price for good Y after the union
Suppose that Congress passes a law which requires employers to provide employees some healthcare benefits that raises the cost to the employers by $5 per hour. a) What is the impact on the demand for labor? (Think quantitatively) b) If the employees value the benefit exactly equal to the cost, what will be the impact on the supply of labor? c) How will the law affect the wage and level of employment? Are the employers better off or worse off? Are the employees better off or worse off? d) Suppose before the implementation of the law, the wage in the market was $3 above the minimum wage. In this case, how the law will affect the wage and level of employment?
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.
Suppose that a firm is producing in the short run with output given by: Q = 55L-L² The firm hires labor at a wage of $45 per hour and sells the good in a competitive market at P = $14 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER.
Please answer with work on how to complete this problem.
Assume the demand for labor for each firm is expressed as L = N (# of employees) x HBAR(average hours per employee per day). Assume a firm has 30 employees that average 6 hours per day for 180 person-hours per day. A minimum wage is passed and reduces demand to 150 person-hours per day. Answer the following questions. a. Draw and demand and supply schedule to represent a binding minimum wage. b. Using the above numbers, how many layoffs are required if average hours per employee are not reduced? Explain c. If no layoffs are made, what would the average hours per employee be set t
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Economic theory suggests that an increase in the minimum wage will prompt firms to hire fewer low skill workers. true or false
In a competitive labor market, employers will not pay less than the market wage because at a wage below the equilibrium A) the equilibrium wage would rise B) they would not be able to hire anyone C) there would be a surplus of workers D) they would be inundated with excess workers