An increase in the minimum wage reduces the totalamount paid to the affected workers if the priceelasticity of _________ is _________ than one.a. supply; greaterb. supply; lessc. demand; greaterd. demand; less
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An increase in the minimum wage reduces the total
amount paid to the affected workers if the price
elasticity of _________ is _________ than one.
a. supply; greater
b. supply; less
c.
d. demand; less
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- When the market price is lower than the equilibrium price, the result is excess ____.When the market price is higher than the equilibrium price, the result is excess _____. Question 1Answer a. Supply; demand b. Demand; demand c. Demand; supply d. Supply; supplyHow does the amount of employment created by an increase in the minimum wage depend on the elasticity of labor demand? Group of answer choices: a. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more elastic. b. When the demand for labor is more elastic, raising the minimum wage has no impact on employment. c. When the demand for labor is more inelastic, raising the minimum wage has no impact on employment. d. When the minimum wage increases, employment will fall by a greater amount when the demand for labor is more inelastic.Assume that 1,000 workers are employed by the University in jobs paying $10 per hour. After a rise in the minimum wage to $12 per hour, only 900 will be employed. Which statement is true about this example? Overall, the total amount of earnings received by workers has increased. At a wage of $12, the total number of people wanting to work but not getting hired will be 100. Labor demand (the quantity of workers demanded at various prices) appears to be elastic
- If the demand for unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to unskilled workers? Would your answer change if the demand for unskilled labor were elastic? (100 – 150 words )Assess the effects of Price ceiling (Hint: Government policies and intervention) please provide detailed answerIf the minimum wage is set A. equal to the equilibrium wage, it will create a shortage of labor. B. equal to the equilibrium wage, it will create a surplus of labor. C. below the equilibrium wage, it will create unemployment. D. below the equilibrium wage, it will create a shortage of labor. E. above the equilibrium wage, it will create unemployment.
- Demand: Qd= 2,600 - 5P Supply: Qs= 1000 + 10P What would be the amount of shortage if a price ceiling is imposed at $180?An economy consists of two regions, the North and the South. The short-run elasticity of labor demand in each region is -0.5. Labor supply is perfectly inelastic within both regions. The labor market is initially in an economywide equilibrium, with 600,000 people employed in the North and 400,000 in the South at a wage of $15 per hour. Suddenly, 20,000 people immigrate from abroad and initially settle in the South. They possess the same skills as the native residents and also supply their labor inelastically.a. What will be the effect of this immigration on wages in each of the regions in the short run (before any migration between the North and the South occurs)?b. Suppose 1,000 native-born persons per year migrate from the South to the North in response to every dollar differential in the hourly wage between the two regions.What will be the ratio of wages in the two regions after the first-year native labor responds to the entry of the immigrants?c. What will be the effect of this…A study of the effects of the minimum wage on employment of low-skilled workers estimated the price elasticity of demand for low-skilled workers is -0.75. Suppose that the government is considering raising the minimum wage from $7.25 per hour to $7.75 per hour. Based on this information, calculate the percentage change in the employment of low skilled workers. Use the midpoint formula?
- For each of the events describe below, you are required to explain:1. The market you are evaluating (e.g., labour market, automotive market, etc).2. Does the event act on the demand side, supply side, or both sides of the market?3. Does the event lead to a quantity or price change? Or does the event lead to a shift indemand, supply, or both?Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply (when plotting your demand and supply, describe whether you are assuming anelastic or inelastic demand/supply).a) A concerted reduction in the total production level in oil markets.b) The implementation of a minimum wage.c) The implementation of subsidies to agricultural production in Australiad) The implementation of a Carbon tax in the resources exploitation sector. A Carbon taxis charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of a new loan program to university students in the educationFor each of the events describe below, you are required to explain:1. The market you are evaluating (e.g., labour market, automotive market, etc).2. Does the event act on the demand side, supply side, or both sides of the market?3. Does the event lead to a quantity or price change? Or does the event lead to a shift indemand, supply, or both?Make sure to explain what sort of assumptions you are making on the elasticities of demandand supply (when plotting your demand and supply, describe whether you are assuming anelastic or inelastic demand/supply).a) A reduction of supply as a consequence of a disruption in the world oil marketsb) The implementation of a minimum wagec) The implementation of taxes to manufacturing of cars in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is chargedaccording to the level of emissions of greenhouse gases in an economy.e) The implementation of a new loan program to university students in the educationsector1. Is the price elasticity of demand for gasoline more INELASTIC over a shorter or a longer period of time? Explain. 2. Is the price elasticity of supply, in general, more INELASTIC over a shorter or a longer period of time? Explain. 3. Is the supply curve for labor usually upward sloping? Explain
