Question

In: Economics

Given downward-sloping demand for labor and upward-sloping supply of labor, explain if wage increases, decreases, or...

Given downward-sloping demand for labor and upward-sloping supply of labor, explain if wage increases, decreases, or has an indeterminate effect if (a) the number of qualified workers decreases and (b) the number of employers increases. Answer (a) and (b) as two different cases.

Solutions

Expert Solution

case a) if the number of the qualified labor decrease in the market, that will shift the supply curve for the labor to the left and the new equilibrium will be at a higher wages and low quantity of labor in the market.

case b) If the number of employers increases then it will shift the demand curve for the labor to the right, the new equilibrium will be at a higher wage and higher quantity of labor employed.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Suppose that the market for flu shots has downward sloping demand and upward sloping supply and...
Suppose that the market for flu shots has downward sloping demand and upward sloping supply and that flu shots yield a positive consumption externality of $5 per shot. Show graphically how the private optimum may differ from the social optimum and indicate the deadweight loss. Additionally, show graphically how a subsidy for flu shots can achieve the social optimum.
Graph a labor supply curve with an upward-sloping labor supply. Label the vertical axis as “wage...
Graph a labor supply curve with an upward-sloping labor supply. Label the vertical axis as “wage rate” and the horizontal axis with “Quantity of labor” a. Place these two points on the curve: {wage= $10, quantity = 30} and {wage = $12, quantity = 45}. Calculate the labor supply elasticity.Label this curve as “Curve A” b. Now, assume that something has changed the labor supply curve so that now the line has a different slope. On this new curve are...
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...
13. A. Why is the labor demand curve downward sloping? B. Why is the labor supply...
13. A. Why is the labor demand curve downward sloping? B. Why is the labor supply curve upward sloping for the market and horizontal for the firm, and what is the MFC?
The market for milk is initially in equilibrium with a downward-sloping demand line and an upward-sloping...
The market for milk is initially in equilibrium with a downward-sloping demand line and an upward-sloping supply line. The government imposes a binding price floor on milk. Which of the following is a consequence of the price floor? (I) The price increases (II) The quantity demanded decreases (a) Only I. (b) Only II. (c) Both of them (d) Neither of them.
Suppose that in the market for widgets, the supply curve is the typical upward-sloping line, and the demand curve is the typical downward-sloping line.
Suppose that in the market for widgets, the supply curve is the typical upward-sloping line, and the demand curve is the typical downward-sloping line. A tax of $4.80 per unit is imposed on widgets and the price rises by $3.25. The equilibrium quantity before the tax imposition was 400,000 widgets and the equilibrium quantity after the tax is 364,000 widgets. The deadweight loss from the tax isSelect one:A. more than $74,150 but less than $76,600      B. more than $76,600 but less...
Assuming an upward-sloping supply curve, when aggregate demand increases then: ____________________, and ________________. What happens to...
Assuming an upward-sloping supply curve, when aggregate demand increases then: ____________________, and ________________. What happens to macro equilibrium?
Assuming an upward-sloping supply curve, when aggregate demand increases then: ____________________, and ________________. What happens to...
Assuming an upward-sloping supply curve, when aggregate demand increases then: ____________________, and ________________. What happens to macro equilibrium?
The wage-schooling locus is A. downward sloping because education is generally productive. B. upward sloping because...
The wage-schooling locus is A. downward sloping because education is generally productive. B. upward sloping because education is generally productive. C. backward bending. D. horizontal because wages are unrelated to schooling. E. vertical because education is a public good. Present value calculations allow one to determine A. the return to an uncertain asset. B. the present-day costs and/or benefits of various options. C. the utility value of a particular option. D. the social cost of financial calculations. E. the real...
Assume a model with a Keynesian downward-sloping aggregate demand curve and an ordinary upward -sloping aggregate...
Assume a model with a Keynesian downward-sloping aggregate demand curve and an ordinary upward -sloping aggregate supply curve. Using this model please show the effects on the following events on separate graphs and explain A.an increase in import spending b.an increase in resource prices c.an decrease om the value of the dollar d.an increase in sales taxes e. an increase in capacity utilization
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT