Suppose a union successfully negotiates an increase in the wages of workers producing computer chips. This...

Suppose a union successfully negotiates an increase in the wages of workers producing computer chips. This would lead to (a decrease, an increase???) in the supply of computers, causing the price of computers to (rise, fall???) . Because computers and computer software are (substitutes, complements???) , this change in price would cause the demand for computer software to (increase, decrease???) . However, computers and typewriters are (substitutes, complements???) , so the change in the price of computers would (decrease, increase???) the demand for typewriters.

Expert Solution

Suppose a union successfully negotiates an increase in the wages of workers producing computers chips. This would lead to a decrease, in the supply of computers using the price of the computers to rise.Because computers and computers software are compliments, this change in price would cause the demand for computers software decreases.However, computers and typewriters are a substitute, so the change in the price of computers would increase the demand for typewriters.

increasing the wages leads to increasing the cost of the production supply will reduce
Lower supply od demand results increasing the price of the computers
Computers and Softwares complimentary goods without Softwares computer has no use then demand computers decrease due to increasing the price of the software
Typewriters and computers substitute the work can be done through typewriters hence the demand for typewriter increase.

Rahul Sunny answered 2 years ago

a(1). "Last year the United Auto Workers Union successfully negotiated a ten percent increase in the...

a(1). "Last year the United Auto Workers Union successfully negotiated a ten percent increase in the wages for its workers. This increase in the wage rate will cause an increase in the demand for automobiles, since many consumers now have greater incomes, but also a decrease in the supply of automobiles because the cost of production has increased.” Explain what is wrong with the statement. Provide a clear explanation in the box below. b.(1).Marcia, says “Economists are silly. Clearly when...

An increase in wages of oil rig workers has increased the cost of producing oil. How...

An increase in wages of oil rig workers has increased the cost of producing oil. How is the supply curve affected by this newly incurred cost? Represent graphically plot against the demand curve, label all points, and explain. How does a $20 dollar subsidy effect the supply curve of Oil per barrel? Represent graphically, plot against the demand curve and explain. Identify the type of good. Explain how the changes will affect demand. Pepsi price declines what happens to the...

a. Suppose the wages of computer-factory workers rises. This will cause (the supply / the demand) ...

a. Suppose the wages of computer-factory workers rises. This will cause (the supply / the demand) of tablet computers to (shift in / shift out) , causing tablet computer price to (rise / fall) and quantity to (rise / fall) .b. Suppose the price of notebook computers (a substitute for tablets) falls. This will cause (the supply / the demand) of tablet computers to (shift in / shift out) , causing price of tablet computers to (rise / fall) and quantity to ...

Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will...

Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will this affect the market for automobiles? Draw a graph depicting the supply and demand for cars to illustrate your answer and attach with your response.

1.Suppose there is a technological advance that reduces the cost of producing computer chips. Use supply...

1.Suppose there is a technological advance that reduces the cost of producing computer chips. Use supply and demand curves to analyse the effects in the following markets: a. market for computers. b. market for computer software. c. market for typewriters 2.Explain with the aid of an example, the law of demand and the law of supply.

Explain the paradox that establishing a union can increase both wages and employment, but once the...

Explain the paradox that establishing a union can increase both wages and employment, but once the union is established it must trade off increases in one for the other.

Suppose the goal of a union is to maximize the total income of all workers it...

Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is a. 0. b. infinite. c. 1. d. ranging from 2 to 5.

The government announces a tax increase on workers' wages to take effect in the future. What...

The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate? Both employment and the real wage rate would increase. Both employment and the real wage rate would decrease. Employment would increase and the real wage would decrease. Employment would decrease and the real wage would increase.

To test the effectiveness of a job training program on the subsequent wages of workers, suppose...

To test the effectiveness of a job training program on the subsequent wages of workers, suppose we estimate the following model using individual level data: log(wagei) =b0 + b1traini+ b2 educi + b3 experi + b4 part-timei + ui (3) where train=1 if a worker participated in the program and =0 otherwise, educ=the years of education a worker has, exper=the number of years of work experience the worker has, and parttime= 1 if the worker held a part-time job(<30hrs/week) and...

A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As...

A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As a result, firm profits increase and there is a pool of involuntarily unemployed workers. In this model, if the firm's cost of monitoring effort falls, A. the firm will increase its number of factory managers. B. the number of shirking workers will fall. C. the efficiency wage will fall. D. firm profits will fall. E. the pool of involuntarily unemployed workers will increase.

Question