Question

In: Economics

1. The New Zealand Ministry of Education recently required that high schools must hire five additional...

1. The New Zealand Ministry of Education recently required that high schools must hire five additional teachers with Master’s degrees in Mathematics.

a. It will take a few months to initiate the hiring process. Discuss the immediate effect on the salaries of teachers with Master’s degrees in Mathematics? Illustrate graphically the effects on the market for Master’s degree mathematic teachers in the short-run.

b. What will be the effect after five years? Discuss and illustrate graphically the effects on the market for Master’s degree mathematic teachers in the long-run. How does the salary in the long-run compare to the short-run and why?

c. Discuss the differences between the short-run and long-run elasticities of supply.

Solutions

Expert Solution

The New Zealand Ministry of Education recently required that high schools must hire five additional teachers with Master’s degrees in Mathematics. It will take a few months to initiate the hiring process.

a)

The immediate effect on the salaries of teachers with Master’s degree in Mathematics will be that their salaries will go up (increase), this is because with every high school hiring five additional teachers will increase the demand for teachers with Master’s degree but the supply can't be increased immediately. So their salaries will increase.

This is shown graphically as -

First figure shows the efffect on salary in the short run, as with increase in demand shifts demand curve from D to D1 and hence salary increases from S to S1.

b)

In the long run, more students will persue Master’s degree in Mathematics and go for teaching work, this will increase the supply of teachers with Master’s degree in mathematics.

This is shown graphically in the second part of the diagram that with increase in supply in the long run the supply curve shifts right to S1 from S. So this brings down the salary to a lower level. (Here I have shown at the initial level S but it may be a little higher or lower because it depends on the amount of increase in supply.

c)

This happens because the elasticity of supply in the short run is less elastic (or inelastic) as supply cant be increased with increase in salary in the short run. But in the long run the supply becomes comparatively elastic as with increase in salary there will be increase in supply in the long run. So in long run supply is more elastic.


Related Solutions

The New Zealand Ministry of Education recently required that high schools must hire five additional teachers...
The New Zealand Ministry of Education recently required that high schools must hire five additional teachers with Master’s degrees in Mathematics. a. (10 points) It will take a few months to initiate the hiring process. Discuss the immediate effect on the salaries of teachers with Master’s degrees in Mathematics? Illustrate graphically the effects on the market for Master’s degree mathematic teachers in the short-run. b. (10 points) What will be the effect after five years? Discuss and illustrate graphically the...
1) The Australian Ministry of Education recently required that high schools must hire five additional teachers...
1) The Australian Ministry of Education recently required that high schools must hire five additional teachers with Master’s degrees in Mathematics. a. It will take a few months to initiate the hiring process. Discuss the immediate effect on the salaries of teachers with Master’s degrees in Mathematics? Illustrate graphically the effects on the market for Master’s degree mathematic teachers in the short-run. b. What will be the effect after five years? Discuss and illustrate graphically the effects on the market...
1. The United States Education department recently required that high schools must hire five additional teachers...
1. The United States Education department recently required that high schools must hire five additional teachers with Master’s degrees in Mathematics. a. It will take a few months to initiate the hiring process. Discuss the immediate effect on the salaries of teachers with Master’s degrees in Mathematics? Illustrate graphically the effects on the market for Master’s degree mathematic teachers in the short-run. b. What will be the effect after five years? Discuss and illustrate graphically the effects on the market...
The Australian government recently required that high schools must hire four additional teachers with Master’s degrees...
The Australian government recently required that high schools must hire four additional teachers with Master’s degrees in Science. It will take a few months to initiate the hiring process. Discuss the immediate effect on the salaries of teachers with Master’s degrees in Science? Illustrate graphically the effects on the market for Master’s degree science teachers in the short-run. What will be the effect after five years? Discuss and illustrate graphically the effects on the market for Master’s degree science teachers...
The Ministry of Health is currently working with researchers around New Zealand to gather and analyze...
The Ministry of Health is currently working with researchers around New Zealand to gather and analyze information about the spread of COVID 19 and how to control it Give an example of how they are using, or could potentially use, descriptive, predictive, or prescriptive analytics to assist.
1. Recently, the COVID-19 crisis has hit the businesses very hard and New Zealand is not...
1. Recently, the COVID-19 crisis has hit the businesses very hard and New Zealand is not an exception. Few of the businesses in New Zealand disappeared, while some of them are managing by lowering their costs through job-cuts or reducing the working hours and so on. You are asked to write a report describing the reasons for why these businesses disappeared (had to shut down completely) inspite of the financial support given by the NZ-Government. Choose any two businesses-NZ. You...
Recently a researcher reported a correlation of -.57 across 30 high schools in the state between...
Recently a researcher reported a correlation of -.57 across 30 high schools in the state between mean teacher salary and the per student vandalism rate of the school (these are not actual data and should be used only for purposes of this take-home). Interpret this finding. What do you believe is the most likely reason that these two variables correlate? (Be specific: if, for example, you believe that there is a third, fourth, etc., variable operating here, please indicate what...
1- What the New Zealand city economic situation and risks? 2- What the New Zealand city...
1- What the New Zealand city economic situation and risks? 2- What the New Zealand city current economic opportunities, challenges, and risks? 3- Is the New Zealand city represents a good opportunity for the coffee business? And, do you recommend entering or not entering that market?
YOU ARE REQUIRED, with reference to relevant New Zealand authority, to set out matters to be...
YOU ARE REQUIRED, with reference to relevant New Zealand authority, to set out matters to be considered in establishing whether a duty of care exists.
Drake is a department manager in a company which has recently decided to hire a new...
Drake is a department manager in a company which has recently decided to hire a new analyst. After interviewing all candidates, Drake recommended the company hire Anne, but senior management preferred to hire Beth. Drake argued that Beth is an inferior choice, but agreed to accept her for a trial period of six months. At the end of the trial period, Drake evaluated Beth’s performance as poor. Although this evaluation may have been fair, it is also possible that it...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT