MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 9DQ
To determine
To analyze:
The correct explanation for an increase in participation and wages for women.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The current quantity demanded of hairdressers is 47,00047,000, and the average salary in the labor market is $27,000$27,000 per year. Recently, several salons closed due to competition, which led to employers demanding only 36,00036,000 hairdressers.Assuming that when quantity demanded decreases by 1,1001,100 workers, the average salary will decrease by $500$500, calculate the new salary in the labor market. Write the exact answer. Do not round.
You are an economic consultant advising on the market for low-skilled labour. The market has an excess supply of individuals at the market rate. The government wants to increase employment in the labour market. Analyse these three different policies using supply and demand analysis. 1) Get rid of unemployment benefits. 2) Reduce tax paid by firms who employ low-skilled labour. 3) Allow firms to employ at any wage by removing wage protections.
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?
Knowledge Booster
Similar questions
- Suppose we increase the overall number of doctors in the U.S. in all fields and specialties of medical practice by equal percentages, which would shift the supply curves in all the respective medical practice markets. Suppose we were to analyze two separate medical practice markets: Plastic Surgery Cardiology Which markets' price would be most impacted by this increase in the supply of doctors? Which markets' quantity would be most impacted by this increase in the supply of doctors?arrow_forwardCommodities include raw materials, minerals and foodstuffs. In the 1970s the price of one commodity, oil, increased fourfold when oil producers cut sales to the West (USA and Europe). Fears of oil shortages also resulted in a huge increase in the price of sugar during the mid to late 1970s. On the other hand, during the 1990s there was a significant fall in a wide range of commodity prices compared to their mid-1990s level as shown in the table below. Prices in 1999 Compared to the Mid 1990s (%) Coffee - 54 Cotton - 51 Wheat - 41 Sugar - 51 Rubber - 65 Aluminum - 39 Copper - 52 Nickel - 60 Lead - 41 The decline in commodity prices hurt developing countries the worst. In sub-Saharan Africa for instance, commodity export account for three quarters of total export earnings. Commodity prices have always been volatile. Food production, for instance, is typically affected by weather conditions and disease and demand is influenced by changes in tastes and, occasionally, medical…arrow_forwardOn April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be?arrow_forward
- Assume that Figure represents the market for designer jeans. Which of the following would most likely cause a shift from S1 to S3? An increase in designers’ wages. A successful advertising campaign for designer jeans. A change in consumer preference in favor of chinos. A decrease in the price of denim that jeans are made from.arrow_forwardMost scalping laws make it illegal to sell—but not to buy—tickets at prices above those printed on the tickets. Assuming that is the case, use supply and demand analysis to explain why the equilibrium ticket price in an illegal secondary market tends to be higher than in a legal secondary market.arrow_forwardWhen excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied $50 45,000 100 40,000 150 35,000 200 30,000 250 25,000 300 20,000 350 15,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ per ticket. The quantity of tickets demanded at the face-value price is tickets.arrow_forward
- For each of the following observations, determine whether supply, demand, or both shifted and how. Over the last decade, the price of hybrid electric vehicles decreased, while the number of hybrid vehicles sold increased. During winter, the number of daily air routes between Denver and Aspen, Colorado, increases, as does the price of a ticket. From January through April in the United States, personal certified public accountants (CPAs) see a dramatic increase in their number of billable hours, but the average hourly rate of a CPA remains the same.arrow_forwardRent Ceilings in New York City New York City rent controls began after World War II, when greater demand for rental housing threatened to push rents higher. To keep prices from rising to their equilibrium level, city officials imposed rent ceilings. Since the quantity demanded at the ceiling price exceeded the quantity supplied, a housing shortage resulted, as was sketched out in panel (b) of Exhibit 11. Thus, the perverse response to a tight housing market was a policy that reduced the supply of housing over time. Prior to rent controls, builders in New York City completed about 30,000 housing units a year and 90,000 units in the peak year. After rent controls, new construction dropped sharply. To stimulate supply, the city periodically promised rent-ceiling exemptions for new construction. But three times the city broke that promise after the housing was built. So builders remain understandably wary. During the peak year of the last decade only about 10,000 new housing units were…arrow_forwardWhen excess demand exists for tickets to a major sporting event or a concert, profit opportunities exist for scalpers. The table below indicates the quantities demanded at various prices, fill in the values for the supply curve for tickets to a sold-out venue that holds 20,000 people. Price per Ticket Quantity of Tickets Demanded Quantity of Tickets Supplied 20,000 $50 45,000 100 40,000 20,000 150 35,000 20,000 200 30,000 20,000 250 25,000 20,000 300 20,000 350 15,000 20,000 20,000 The fact that there is a face-value price of $50 per ticket could be illustrated on a graph as a horizontal line at $50 The equilibrium price that will prevail in the market if scalpers are allowed to operate in the black market would be $ 300 per ticket. The quantity of tickets demanded at the face-value price is 45,000 tickets. For this example, a shortage of tickets exists at the face-value price.arrow_forward
- According to the Australian Wool Innovation, severe drought conditions in Australia contributed to the lowest level of wool production in 50 years. This record low production has driven up prices sharply in Australian wool markets. Meanwhile, the price of raw cotton increased significantly for the first time in many years.arrow_forwardWith increased access to wireless technology and lighter weight, the demand for laptop computers has increased substantially. Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand, prices have fallenarrow_forwardBetween 1950 and 2020, the price of wheat fell dramatically from $20.23 per bushel to $4.85 per bushel. Suppose between 1950 and 2020, the supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the right. With this supply shift, the amount by which the price of wheat falls will be larger the more the demand for wheat. In addition, assume that between 1950 and 2020 the income of the average American increased substantially and that wheat is a normal good. With this increase in income, OA. the price of wheat will be unaffected. OB. the amount by which the price of wheat rises will be smaller the higher the income elasticity of wheat. C. the amount by which the price of wheat falls will be smaller the higher the income elasticity of wheat. OD. the amount by which the price of wheat rises will be smaller the lower the income elasticity of wheat. OE. the amount by which the price of wheat falls will be larger the higher the income…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Macroeconomics: Principles and Policy (MindTap Co...EconomicsISBN:9781305280601Author:William J. Baumol, Alan S. BlinderPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Macroeconomics: Principles and Policy (MindTap Co...
Economics
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning