Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter P3, Problem 9KC
To determine
The market supply curve of the labor
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Island City is located on a small island, while Plains City is located at the center of a large, flat, featureless plain. Draw two labor-supply curves, one for each city.
a. The supply curve for Island City is [steeper/flatter] because. . . .
b. The elasticity of supply of labor in Island City is [higher, lower].
Which would decrease the demand for a particular type of labor?
An increase in the prices of the resources that are complements to that type of labor
An increase in the wages of that type of labor
X
An increase in the demand for the products produced by that type of labor
A decrease in the prices of those resources that are complements for that type of labor
An increase in the productivity of labor induces
a) a firm to hire fewer workers since fewer workers are needed with the increase in productivity.
b)an increase in the cost of labor.
c) a firm to offer a higher wage for workers since the workers are now more productive.
d) an increase in the demand for labor.
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- Which of the following would increase the supply of labor? There’s a decrease in the number of workers The amounts of capital firms have increases The productivity of workers increases Immigration increases the number of workersarrow_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_forward1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes. Her tomato (short-run) production function is given by q= L3 where L measures hours of labor and q measures pounds of tómatoes. (a) demand curve for labor. Lynn hires labor from a competitive labor market. Find her short run (b) elastic than her short-run demand for labor? Explain your answer. Would you expect Lynn's long-run demand for labor to be more or lessarrow_forward
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