Question

8a. Draw a labor market for un-skilled labor assuming demand is perfectly inelastic. 8b. Insert a...

8a. Draw a labor market for un-skilled labor assuming demand is perfectly inelastic.
8b. Insert a minimum wage above the equilibrium wage into the market and illustrate the new wage and new level of employment.
8c. If the number of un-skilled workers rises after a minimum wage is implemented, use economic analysis and derived demand to explain this effect in the labor market.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Draw a supply and and demand for a labor market. Show and explain what happens if...
Draw a supply and and demand for a labor market. Show and explain what happens if a minimum wages set above the equilibrium wage. If the demand for labor is inelastic with respect to price, would it make sense for workers to unionize and force the wage up? Explain.
Suppose that after an influx of immigrants, labor supply in the market for low-skilled workers is...
Suppose that after an influx of immigrants, labor supply in the market for low-skilled workers is now given by ES = 30w − 180 (was ES = 30w-300). Labor demand is still ED = 300 − 10w. The government decided against imposing a minimum wage and the market wage is freely determined by labor supply and demand. (a) Are the immigrants perfect substitutes or complements for native low-skill labor? (b) Plot the original market equilibrium along with the new labor...
QUESTION 10 If unskilled labor and capital are substitutes, the price of unskilled labor decreases when...
QUESTION 10 If unskilled labor and capital are substitutes, the price of unskilled labor decreases when the price of capital increases. the cross-elasticity between unskilled labor and capital is positive. the price of capital is increasing. demand for unskilled labor increases when the price of capital decreases. QUESTION 11 The imposition of a minimum wage on a competitive labor market will likely create unemployment as some people enter the labor market while some firms reduce the quantity of labor they...
1. Imagine the labor supply curve is perfectly inelastic. A minimum wage set above the market...
1. Imagine the labor supply curve is perfectly inelastic. A minimum wage set above the market clearing wage causes the most unemployment when the labor demand curve is A. Perfectly elastic B. Somewhat elastic C. Perfectly inelastic D. A minimum wage set above the market clearing wage will not cause unemployment because the labor supply curve is perfectly inelastic. 2. Suppose the price of a large basket of goods and services is $103,000 this year. If it is $111,000 next...
Suppose you manage a firm, which is a monopsony in the labor market and a monopoly...
Suppose you manage a firm, which is a monopsony in the labor market and a monopoly in the product market. Suppose another firm moves into your market, hiring from the same pool of workers and selling an identical product to the same set of customers. Use the model of monopsony to analyze the impact of the new firm on the quantity of output you produce (Q), the price your firm should charge (P), the quantity of workers you employ (L),...
4. (10%) Consider a competitive market for labor where the supply of labor are workers and...
4. (10%) Consider a competitive market for labor where the supply of labor are workers and the demand for labor comes from firms. The local government sets a minimum wage above the current equilibrium wage. What effect does this have on employment? What are its effects on consumer surplus, producer surplus, and total surplus? Support your answer with a graph. (hint: if you need to, revisit the content on price controls from earlier in the semester)
Like any market, labor market has its own supply, demand and equilibrium. In the United States,...
Like any market, labor market has its own supply, demand and equilibrium. In the United States, there is minimum wage that an employee is expected to be paid. Its effect, however, depend on whether the labor market is competitive. Let us assume that the labor market is in equilibrium, what do you think employers will do to attract new hires?
The minimum wage: a. What are the economic effects predicted by the standard perfectly competitive labor...
The minimum wage: a. What are the economic effects predicted by the standard perfectly competitive labor market model? b. What are the theoretical and empirical implications of incomplete coverage? c. Demonstrate the theoretical importance of the ceteris paribus assumption in estimating any disemployment effect of the minimum wage. d. Explain how intersectoral shifts in product demand might confound empirical estimation of the impact of the minimum wage. e. Show the implication of the monopsony model on the impact of the...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. b) On your diagram from Part (a), label the consumer and producer surplus. c) Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. 2. On your diagram from Part (a), label the consumer and producer surplus. 3. Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT