Question

In: Economics

Suppose the market demand and supply for labor hours in a segment of a labor market...

Suppose the market demand and supply for labor hours in a segment of a labor market affected by a minimum wage in a certain state is given by the table below.

Labor Hours Demanded

Hourly Wage

Labor Hours Supplied

72

$10

85

73

$9

80

75

$8

75

77

$7

70

79

$6

65

81

$5

60

Using the graph below, show the equilibrium wage and hours of labor in this market.

Suppose the state government sets a minimum wage of $9 per hour. Using the graph below, and beginning from the equilibrium you identified in a), demonstrate the effects of this minimum wage on; i) the quantity of labor supplied, and, ii) the quantity of labor demanded. Has the minimum wage raised or lowered the hours of labor employed? Explain.

Solutions

Expert Solution

Rahul Sunny answered 3 years ago
Next > < Previous

Related Solutions

Suppose that total market demand for labor is ED=20,000 - 200w and total labor supply is...
Suppose that total market demand for labor is ED=20,000 - 200w and total labor supply is ES=600w. Answer questions below (a-e). (a) What is the market-clearing wage? What is the market equilibrium employment? (b) If a per unit payroll tax of $10 is imposed on employers, what will be the after-wage paid by employers? What will be the after-tax wage received by workers? (c) What is the deadweight loss from the tax? (d) What percent of the tax do employers...
Wages is determined by the supply of and demand for the labor in the labor market...
Wages is determined by the supply of and demand for the labor in the labor market under normal competitive conditions and by the number of people looking for job and the number of companies looking for employees. In addition, wage levels are shaped by the skill sets workers bring and employers need, as well as the location of the jobs being offered. When workers sell their labor, the price they can charge is influenced by several factors on the supply...
Suppose there is a local employment (i.e., labor) market characterized by the following supply and demand...
Suppose there is a local employment (i.e., labor) market characterized by the following supply and demand functions: Quantity Supplied = 8*Wage Quantity Demanded = 150 - 2*Wage a). What is the equilibrium number of workers and market wage?
The market supply curve for labor is upward sloping and the market demand curve for labor...
The market supply curve for labor is upward sloping and the market demand curve for labor is downward sloping yet for a single firm the demand curve is flat. Explain. I really dont need the answer, but if someone could explain what this is asking. I get that the market supply curve slopes upward and the demand curve slopes downward, but what exactly is the question getting at when it says a single firm is flat. Is it referring to...
Suppose that Labor Supply is given by: L Supply = 5w Labor Demand had been such...
Suppose that Labor Supply is given by: L Supply = 5w Labor Demand had been such that the equilibrium wage rate was $20; however, a negative shock hit labor demand so that the new Labor Demand is given by: L Demand = 55 - 0.5w Suppose that the shock to labor demand affected only the labor demand curve's intercept and not its slope. What must have been the pre-shock intercept for labor demand (ie the quantity of labor demanded if...
Suppose that the market for unskilled labour in Canada is such that the wage (price of labor) and employment (quantity of labor) are determined by supply and demand.
Suppose that the market for unskilled labour in Canada is such that the wage (price of labor) and employment (quantity of labor) are determined by supply and demand. Suppose further that the Canadian government, concerned by the low revenues on the market, decides to introduce a minimum wage. Suppose that initially the equilibrium wage is CAD 1000 and the equilibrium quantity of unskilled workers is 1,000,000 and that the government decides to impose a minimum wage of CAD 1200.(a) Knowing...
In the labor market, what are the firm’s demand curve for labor and the workers’ supply...
In the labor market, what are the firm’s demand curve for labor and the workers’ supply curve of labor?
Here are listed the supply and demand schedule for labor hours in France. This country has...
Here are listed the supply and demand schedule for labor hours in France. This country has several restrictive laws & strikes! Wage Quantity Supplied Quantity Demanded 10 3,000 5,000 12 3,500 4,500 14 4,000 4,000 16 4,500 3,500 18 5,000 3,000 Identify new equilibrium price and quantity if a minimum wage law is enacted for Wage = 12 euros an hour. What happens to the market wage if the trade union restricts the supply of labor hours to 3,000? Identify...
Here are listed the supply and demand schedule for labor hours in France. This country has...
Here are listed the supply and demand schedule for labor hours in France. This country has several restrictive laws & strikes! Wage Quantity Supplied Quantity Demanded 10 3,000 5,000 12 3,500 4,500 14 4,000 4,000 16 4,500 3,500 18 5,000 3,000 Identify new equilibrium price and quantity if a minimum wage law is enacted for Wage = 12 euros an hour. What happens to the market wage if the trade union restricts the supply of labor hours to 3,000? Identify...
Here are listed the supply and demand schedule for labor hours in France. This country has...
Here are listed the supply and demand schedule for labor hours in France. This country has several restrictive laws & strikes! Wage Quantity Supplied Quantity Demanded 10 3,000 5,000 12 3,500 4,500 14 4,000 4,000 16 4,500 3,500 18 5,000 3,000 Identify equilibrium wage and quantity
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT