If the labor market was in equilibrium with a market wage of $10 an hour and...

If the labor market was in equilibrium with a market wage of $10 an hour and the state of NJ implement a min wage law of $15 an hour. Explain what type of policy Murphy implemented impact this will have on the market. (i.e price floor or price ceiling) Hint Draw the graph and explain in detail this markets the labor market will have.

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Rahul Sunny answered 2 years ago

5) If the labor market was in equilibrium with a market wage of $10 an hour...

5) If the labor market was in equilibrium with a market wage of $10 an hour and the state of NJ implement a min wage law of $15 an hour. Explain what type of policy Murphy implemented impact this will have on the market. (i.e price floor or price ceiling) Hint Draw the graph and explain in detail this markets the labor market will have

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If...

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, then A. both consumer surplus and producer surplus increase since the new price is higher. B. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. C. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus. D....

The equilibrium wage in the fast food industry in US is $10 per hour equilibrium quantity...

The equilibrium wage in the fast food industry in US is $10 per hour equilibrium quantity is 1,000,000 worker hours. This is the Benchmark Equilibrium; call it point E. This is a perfectly competitive market, where the demand and supply curves have regular shape. Please draw the benchmark equilibrium, which should lie at the intersection of the Demand and Supply curve. Suppose because of political action and worker unrest in this industry, government imposes a $18 minimum wage. At the...

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage...

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage rate and employment change? Wage Rate Employment a.) Increase Increase b.) Increase Decrease c.) Decrease Increase d.) Decrease Decrease e.) No change Decrease 29.)How will a decrease in demand for computer repairs impact the demand and wage rate for skilled computer technicians? Wage Rate Employment a.) Decrease Decrease b.) No change Decrease c.) Increase Decrease d.) Increase Increase e.) No change Increase 30.)Which of...

1. The equilibrium wage in the labor market is $5 and the government feels it is...

1. The equilibrium wage in the labor market is $5 and the government feels it is too low. They want to put in a binding price control - would they enact a price ceiling or a price floor? Give a numerical example of such a binding price control. 2. The equilibrium price of white bread is $3 and the government feels is it is too high.They want to put in a binding price control - would they enact a price...

If a union establishes a wage floor above the equilibrium wage in a typical,competitive labor market,...

If a union establishes a wage floor above the equilibrium wage in a typical,competitive labor market, what will be the result? Question 22 options: an increase in wages and an increase in the quantity of workers employed an increase in wages and a decrease in the quantity of workers employed a decrease in wages and an increase in the quantity of workers employed a decrease in wages and a decrease in the quantity of workers employed

Suppose the manufacturing labor market, which is nonunionized, is in equilibrium at a wage equal to...

Suppose the manufacturing labor market, which is nonunionized, is in equilibrium at a wage equal to $25. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. After the workers become unionized, how many workers do manufacturing firms collectively hire? 160 workers 200 workers 240 workers There is not enough information to determine the number of workers. After an employer pays the cost of educating a worker,...

2. The current wage rate is $10 per hour, and there is no non-labor income. a) ...

2. The current wage rate is $10 per hour, and there is no non-labor income. a) Draw this budget constraint on a graph. How much income is earned if no leisure is taken? Show this on your graph. Consider the following plan for a progressive income tax. If income is below $50 per day, there is no income tax. For incomes between $50 and $100 per day, there is a 10% tax. For incomes above $100 per...

Consider the market for unskilled labour where the equilibrium wage rate is $6 per hour. A....

Consider the market for unskilled labour where the equilibrium wage rate is $6 per hour. A. Suppose the government introduces a price floor of $5 on the market wage. Is price floor binding in this case? What effects will this have on the market outcome and welfare? B. Now suppose the government introduces a price floor of $7 on the market wage. Is price floor binding in this case? What effects will this have on the market outcome and welfare?...

Question 3. Consider the market for labor. Explain what happens to the equilibrium wage and the...

Question 3. Consider the market for labor. Explain what happens to the equilibrium wage and the equilibrium labor employed in each of the following events. a. Firms decrease the use of machines that labor work with. b. Population decreases. c. Demand for the firm’s product decreases. d. Price of the firm’s product increases.

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