EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 13, Problem 6RQ
a)
To determine
To analyze the way, rise in the price of output that workerproduces shifts the supply and
b)
To determine
To analyze the way, rise in the cost of an input that is the substitute of workershifts the supply and demand curve of labor and the way it will affect the wage rate.
c)
To determine
To analyze the way, rise in the wage in some other market shifts the supply and demand curve of labor and the way it will affect the wage rate.
d)
To determine
To analyze the waylarge influx of newworker,shift the supply and demand curve of labor and the way it will affect the wage rate.
e)
To determine
To analyze the way regulation of providing health insurance to the workers by the firm will shift the supply and demand curve of labor and the way it will affect the wage rate.
f)
To determine
To analyze the way institution of tax on wages shifts the supply and demand curve of labor and the way it will affect the wage rate.
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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
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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 $6 per hour. This type of price control is called a
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0
hundred workers.
Suppose you run a business that specializes in producing graphic T-shirts, using labor as an input.
Hourly wage
($)
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.
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demanded
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Quantity
supplied
600
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Hours worked
reset
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Supply
Demand
E
Consider an INCREASE in the wage (as demanded by the labor groups) to a higher level than the equilibrium price for labor. SHOW geometrically what will happen in the labor market. What problem(s) is/are likely to arise in the labor market?
Chapter 13 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 13.1 - Prob. 1MQCh. 13.1 - Prob. 2MQCh. 13.2 - Prob. 1TTACh. 13.2 - Prob. 2TTACh. 13.3 - Prob. 1MQCh. 13.3 - Prob. 2MQCh. 13.5 - Prob. 1MQCh. 13.6 - Prob. 1MQCh. 13.6 - Prob. 1TTACh. 13.6 - Prob. 2TTA
Ch. 13.6 - Prob. 1.1TTACh. 13.6 - Prob. 2.1TTACh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQCh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.10P
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- 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? Explainarrow_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_forwardSolve Input demand and input supply Item1 : Good Q , L labor ,W wage ,A level of technology Q=A0K^alpha L^beta Q=80-P A0=1 K =36 unit L =40+0.5w alpha =0.5 beta =0.5 1. From the condition and price of the labor market equilibrium quantity in item 1, assuming that the price of good Q increases by 10% of the price of P0 Show the change in the price of the labor factor. and the amount of labor factor to be traded in the labor market And along with calculating the income size of both buyers and sellers, labor factors that should be relied on 2.Summarize the theoretical principles of the properties of demand. in factors of production and the factors affecting the change in the price of production factors are obtained when the price of production changes, the quantity of capital k changes, and the level of technology. as well as the supply characteristics of the changing factorsarrow_forward
- 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. (graph in image) In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 12 8 True or False: A minimum wage…arrow_forwardSuppose this is the market of oil workers in Texas. Assume that coal is a substitute for oil. Draw a supply and demand diagram to illustrate what would be the effect of each of the following events in the equilibrium wage and equilibrium quantity of oil workers: The price of oil rises. New oil-drilling equipment is invented that is cheap and requires few workers to run. Several major companies that do not drill oil open factories in Texas, offering many well-paid jobs outside the oil industry.arrow_forwardName some factors that can cause a shift in the supply curve in labor markets.arrow_forward
- Assume that the information technology and consulting industries employ people with similar skills. Suppose a decrease in the demand for consultants leads to a fall in their wages, while the demand for computer analysts remains the same. The following graph shows the labor market for computer analysts in the United States. Show the effect of the fall in demand for consultants on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor supply curve, or both. WAGE LABOR Supply Demand Demand Supply ?arrow_forwardYou are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain in sentence form how this would change demand for labor. You own a sports equipment manufacturing firm. You were just informed rent at your warehouse space would double.arrow_forwardSuppose BMW runs a great ad campaign that increases demand and drives up the price of BMWs. Which of the following do you expect to happen to the equilibrium price and quantity of BMW labor? Pick one of the following: The equilibrium price (wage) and quantity of labor will both decrease. The equilibrium price (wage) will increase while the quantity of labor will decrease. The equilibrium price (wage) will decrease while the quantity of labor will increase. The equilibrium price (wage) and quantity of labor will both increase.arrow_forward
- Problem 4 Consider a labor market. Quantity supplied is given by Qs=1000+20*P. Quantity demanded is given by Qd=1307.5-0.5*P Plot these curves on a graph with 5 points at P=5,10,15,20,25arrow_forwardState whether each of the following events will result in a movement along the market supply curve of agricultural labor in the United States or whether it will cause the market supply curve of labor to shift. If the supply curve shifts, indicate whether it will shift to the left or to the right in the provided graph. A decline in the agricultural wage rate will result in a movement along the labor supply curve. An increase in wages outside of agriculture will result in a shift in labor supply curve. the Use the line drawing tool (for a shift in supply) or the arrow drawing tool (for a movement along the supply curve) to indicate the effect on the supply curve for labor as a result of as a result of an increase in wages outside of agriculture by drawing either a new labor supply curve or an arrow overlapping the original supply curve indicating the direction of the movement in Graph A. Carefully follow the instructions above, and only draw the required objects. Wage Graph A S₁ Quantity…arrow_forwardWhich of the following is not correct? In a labor market, the wage adjusts to balance the supply and demand for labor. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor. Any event that changes the supply or demand for labor must change the equilibrium wage. Any event that changes the supply or demand for labor must change the value of the marginal product.arrow_forward
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