12-1 Explain why the quantity of labor supplied increases with the wage, other things remaining constant (Market Supply of Labor) The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (Q,) supplied to the market. 1. Hourly Wage Hours per Week Q, $15 20 16 25 17 35 10 18 45 25 10 19 42 40 30 20 38 37 45 Why does the quantity supplied tend to increase with the hourly wage? Which individuals, if any, have backward- bending supply curves in the wage range shown? Does the market supply curve bend backward in the wage range shown in the table?

12-1 Explain why the quantity of labor supplied increases with the wage, other things remaining constant (Market Supply of Labor) The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (Q,) supplied to the market. 1. Hourly Wage Hours per Week Q, $15 20 16 25 17 35 10 18 45 25 10 19 42 40 30 20 38 37 45 Why does the quantity supplied tend to increase with the hourly wage? Which individuals, if any, have backward- bending supply curves in the wage range shown? Does the market supply curve bend backward in the wage range shown in the table?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...

See similar textbooks

Similar questions

What is die price commonly called in the labor market?
Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?
Name some factors that can cause a shift in the demand curve in labor markets.
Other than the demand for labor, what would be another example of a 'derived demand?
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
What is a perfectly competitive labor market?
If immigration is reduced, what is the impact on the wage for low-skilled labor? Explain.