Click to see additional instructions When supplying labour for universities, academics are aware that they can also use their expert knowledge and skills in non-educational jobs. Let w be the wage in the university sector and Wa be the expected wage an academic could earn in industry in their field. A. Suppose the industry wage increases. Labour demand for professors will -1 and labour supply for industrial professionals will (Enter '1' for increase, '0' for remain unchanged, '-1' for 1 decrease, '3' for possibly increase or decrease) B. Let Ls = 4w denote the initial university sector labour supply. The graph of this supply cure has slope 4 and vertical intercept 0 Suppose two professors are attracted by the increase in the alternative wage and leave the education sector such that Ls' = Ls - 3. The graph of the new labour supply curve has slope 4 and vertical intercept -3 C. As a result the equilibrium wage will 1 and the equilibrium (Enter '1' for number of professors working in this sector will -1 increase, '0' for remain unchanged, '-1' for decrease, '3' for possibly increase or decrease) D. (Notes upload) Demonstrate why using your graph (you may sketch any representative demand curve).

Click to see additional instructions When supplying labour for universities, academics are aware that they can also use their expert knowledge and skills in non-educational jobs. Let w be the wage in the university sector and Wa be the expected wage an academic could earn in industry in their field. A. Suppose the industry wage increases. Labour demand for professors will -1 and labour supply for industrial professionals will (Enter '1' for increase, '0' for remain unchanged, '-1' for 1 decrease, '3' for possibly increase or decrease) B. Let Ls = 4w denote the initial university sector labour supply. The graph of this supply cure has slope 4 and vertical intercept 0 Suppose two professors are attracted by the increase in the alternative wage and leave the education sector such that Ls' = Ls - 3. The graph of the new labour supply curve has slope 4 and vertical intercept -3 C. As a result the equilibrium wage will 1 and the equilibrium (Enter '1' for number of professors working in this sector will -1 increase, '0' for remain unchanged, '-1' for decrease, '3' for possibly increase or decrease) D. (Notes upload) Demonstrate why using your graph (you may sketch any representative demand curve).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 4P

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Similar questions

Why is there unemployment in a labor market with flexible wages?
While unemployment is highly negatively correlated with the level of economic activity, in the real world it responds with a lag. In other wands, firms do not immediately lay off workers in response to a sales decline. They wait a while before responding. Similarly, firms do not immediately hire workers when sales pick up. What do you think accounts for the lag in response time?
Under what Circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor?
Please answer the c and d. Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 - 0.5W Supply: LS = 0.5W a. Find the equilibrium wage and employment levels. b. Graph the curves and indicate the equilibrium on a graph. c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market? d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.
QUESTION TWOa) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are wi = K5 and wj = K3 respectively. At the existing wages in labour market I and j, calculate;i). What is the nature of relationship between labour market i and labour market j.ii) Discuss the relationship between slope and elasticity of labour demand curve.
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assumingthatwagesareflexible,andthenassumingthat wages are sticky downward.
Consider an economy with two labor markets—onefor manufacturing workers and one for serviceworkers. Suppose initially that neither is unionized.a. If manufacturing workers formed a union, whatwould you expect to happen to the wages andemployment in manufacturing?b. How would these changes in the manufacturinglabor market affect the supply of labor in themarket for service workers? What would happento the equilibrium wage and employment in thislabor market?
Consider a state, its economy is largely based on two sectors, e.g. manufacturing and services. Most of local labor forces are employed in either automobile manufacturers or traditional service industries (catering, education, retail and state employees). At state level, total employment is 1.6 million (or 1600 thousand). Demand functions for labor force in manufacturing (M) and service (S) are given as following. Demand for labor in manufacturing (thousand), with wage as Wm ($/week). M = 4000 – 3 * Wm. Demand for labor in service (thousand), with wage as Ws ($/week). S = 2000 – 2 * Ws. As above, total employed labor is 1,600 (thousand), so we have M + S = 1600 (thousand). Then finish the following questions. (1) If labor forces are free to move between manufacturing and service sectors, what relationship is between wages in manufacture and service sectors, Wm and Ws (higher, lower or the same)? And why? (2) Following the condition in…
QUESTION TWOa) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are wi = K5 and wj = K3 respectively. At the existing wages in labour market I and j, calculate;i. The own wage elasticity of labour demand.ii. Cross elasticity of demand.iii. Is this a well behaved labour demand function?iv. What is the nature of relationship between labour market i and labour market j.b) Discuss the relationship between slope and elasticity of labour demand curve.c) Explain using an example of your choice how technological innovations have the potential to change the structure of demand in the labour market.
(a) Solve for the equilibrium wage and employment level.(b) Graph the demand and supply curves.(c) At this equilibrium, what is your welfare/gains from trade?(d) Now, assume a minimum wage has been implemented at $20. How will this impact yourdemand? Supply?(e) How many workers are displaced by this new policy? How much “extra” unemployment occurswith this new policy? Hint: Think about the reservation wage.(f) Graph the new labor demand and supply with this minimum wage.(g) At this equilibrium, what is your new welfare? Are you better off with this change? Explain.
In a country called Uncle Sam Land (USL), the labor demand curve is given by:W = K- 4LWhere W is the wage rate, K is a variabledetermined by accumulated capital stock in thecountry, and L is the labor force in the country.K= 50 is supplied by the capitalists.If the labor force in this country goes up from 10 to 11, what happens to the national income in USL?National Income = income of all workers + income of all capitalists.Select one:a. Does not changeb. Goes down by 44c. Goes up by 8d. Goes up by 26e. None of the above.