Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 15P
To determine
The effect of a minimum wage and to discuss the ones that are helped and the ones that are hurted by the law of minimum wage.
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Students have asked these similar questions
Economics: Labor Economics
Question:
Labor demand and supply are given by w = 50 - 3Ed and w = 10 + Es. Please show work for each part.
a.What is the equilibrium wage of this market? [a]
b.What is the equilibrium number of workers employed in this market? [b]
Suppose now a tax of $5 is added into this market.
c.How much do workers receive as wage after this payroll tax? [c]
d.How much do firms have to pay workers after this payroll tax? [d]
e.What is the government tax revenue as a result of this payroll tax? [e]
f.What is the amount of deadweight loss generated as a result of this payroll tax (do not round, write out entire number)? [f]
Thank you for your support and help Study Agent!
(Figure: Labor Market) Refer to the labor market shown here. A minimum wage of $18 per hour is introduced. The implementation of the minimum wage leads to a _____ of _____ workers.
5. Minimum-wage laws and unemployment
Consider the market for labor depicted by the demand and supply curves that follow.
Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator.
Graph Input Tool
(?)
Market for Labor
16
14
Supply
Wage
2.00
(Dollars per hour)
12
1,400
200
Labor Demanded
(Thousands of
workers)
Labor Supplied
(Thousands of
workers)
10
8
Demand
0
0 200 400 600 800 1000 1200 1400 1600
LABOR (Thousands of workers)
Complete the following table with the quantity of labor supplied and demanded if the wage is set at $10.00. Then indicate whether this wage will res
in a shortage or a surplus.
Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.
Labor Demanded
Labor Supplied
Wage
(Thousands of workers) (Thousands of workers) Shortage or Surplus?
$10.00
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of…
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Similar questions
- 9. 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 2 0 0 Supply Demand 80 160 240 320 400 480 560 640 720 800 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) the Fast Food Industry 8 480 Labor Supplied (Thousands of workers) 320arrow_forwardName some factors that can cause- a shift in the supply curve in labor markets.arrow_forward(Figure: Minimum Wage) Refer to the figure. At a minimum wage of $8, firms are willing to hire workers. Figure: Minimum Wage Wage $8 6 a b P 25 35 45 D Quantity of laborarrow_forward
- 11. Which economic concept describes the highest wage an employer is willing to pay for an additional unit of labor? A) Minimum wage B) Equilibrium wage C) Marginal cost D) Price floorarrow_forward5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 24 21 18 15 0 0 Supply Demand 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) 3.00 1,050 Labor Supplied (Thousands of workers) 150arrow_forward7. Wages and salaries comprise the price of labour. What happens to the market for labour when immigration increases? (A) Demand rises; wages go up. (B) Demand declines; wages go down. (C) Supply rises; wages go down. (D) Supply declines; wages go uparrow_forward
- Question 3 (1 PPT slide) a. What is the relationship between minimum wages and employment? b. How does minimum wage affect small firm business and production workers alike? c. How does these effect younger and female workers? Explain. d. Based on the lecture notes, how is minimum wage related to the concept of price control? EXPLAIN graphically and in words. Scanned handwritten/digitally hand-drawn graphs are allowed in the PPT slide. Source: "Effects of minimum wage on the Philippine economy"arrow_forward7. Shifts in labor supply Suppose that a large number of U.S.actuaries decide to take employment in Europe due to better benefits and work environments at European companies. The following graph shows the labor market for actuaries in the United States. Show the effect of the emigration on the U.S. labor market for actuaries by shifting the labor demand curve, the labor supply curve, or both. Supply Demand Supply Demand LABOR WAGEarrow_forward(KEY QUESTION) Consider the market for station wagons. For each of the events listed below,identify which of the determinants of demand or supply are affected. Also indicate whether demandor supply is increased or decreased.a. People decide to have more children.b. The price of mini-vans rises.c. A strike by steelworkers raises steel prices.d. Engineers develop new automated machinery for the production of station wagons.e. A stock market crash lowers people's wealth.f. IMPORTANT: In all the above cases, is the change in equilibrium quantity less, more, orequal to the initial change in demand or supply? Why is this? (recall our discussion in thelectures, you can check slides 3-6 from week 5 or the lecture recordings.g. IMPORTANT: Now assume the changes in parts a. and c. happen simultaneously. Show themon the diagram and explain what will/may happen to the equilibrium price and quantity (Iencourage you to try this for combinations of the other changes too) PLEASE ANSWER SUBQUESTIONS D…arrow_forward
- (KEY QUESTION) Consider the market for station wagons. For each of the events listed below,identify which of the determinants of demand or supply are affected. Also indicate whether demandor supply is increased or decreased.a. People decide to have more children.b. The price of mini-vans rises.c. A strike by steelworkers raises steel prices.d. Engineers develop new automated machinery for the production of station wagons.e. A stock market crash lowers people's wealth.f. IMPORTANT: In all the above cases, is the change in equilibrium quantity less, more, orequal to the initial change in demand or supply? Why is this? (recall our discussion in thelectures, you can check slides 3-6 from week 5 or the lecture recordings.g. IMPORTANT: Now assume the changes in parts a. and c. happen simultaneously. Show themon the diagram and explain what will/may happen to the equilibrium price and quantity (Iencourage you to try this for combinations of the other changes too)arrow_forward2. Plumbers are calling on their union to work with the government to have their minimum wage increased. Assume that the union and the government come to an agreement and a new minimum wage of $60,000/year is negotiated; (3K] [3A] (a) Minimum wage is an example of a price (b) Draw a line representing the minimum wage on the graph (page 1). Illustrate on your graph the effect of the new minimum wage on the quantity of plumbers demanded and the quantity of plumbers supplied. (c) Fill in the blanks below: • There will be a plumbers surplus / shortage how many?arrow_forwardTable 28-4 The following data is about the labor market in the city of Productionville. Wage (Dollars per hour) Quantity Demanded (Units) Quantity Supplied (Units) 8 6,000 16,000 7 9,000 14,000 6 12,000 12,000 5 15,000 10,000 4 18,000 8,000 Refer to Table 28-4. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed? Group of answer choices 0 2,000 5,000 10,000arrow_forward
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