e tax elasticity of labor supply is 0.24, by what percentage will the quantity of labor supplied increase in response to a. a $500 per person income tax rebate? multiple choice A 4.8 percent increase A 1.2 percent increase No increase A 2.4 percent increase b. a 9 percent reduction in marginal tax rates?

e tax elasticity of labor supply is 0.24, by what percentage will the quantity of labor supplied increase in response to a. a $500 per person income tax rebate? multiple choice A 4.8 percent increase A 1.2 percent increase No increase A 2.4 percent increase b. a 9 percent reduction in marginal tax rates?

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 5P

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Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E ' D and W' are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic. a. %Δ E D = 5, %Δ W = –10 b . E D = 50, W = 7 E'D = 40, W' = 8 c . E D = 80, W = 8 E' D = 100, W' = 6
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, however, faces an upward-sloped labor supply curve ofE = 20w - 120where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the firm faces an upward-sloped marginal cost of labor curve ofMCE = 6 + 0.1EEach hour of labor produces five units of output. How many workers should the firm hire each hour to maximize profits? What wage will the firm pay? What are the firm’s hourly profits?
Explain the relationship between the own-wage elasticity of labor demand and output demand elasticity. labour costs as a share of total costs of production.
At a price of $5/hour, Bob wants to hire three workers. When the price rises to $7/hour, Bob wants to hire only two workers. Bob's price elasticity of demand for workers is calculated as_________ , which means workers are a(n) __________ resource for Bob (type either elastic / inelastic / unitary elastic in the second blank and spell correctly). For all numbers, please make sure you round to two decimal places (putting the required digits to the left of the decimal point and two digits to the right of the decimal point and an additional hint is to use the midpoint method).
5. What are the three primary factors that determine the magnitude of the wage elasticity ofdemand for labour? These are called Hicks’ laws. For each of them, explain how they work..
Q47 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which labour is an input. Assume that the coefficient of elasticity of product demand in Canada is 2.4 in industry A (cannabis sector) and is 0.8 in industry B (fertilizer industry). Other things equal, labour demand will be Multiple Choice relatively elastic in both industries A and B. more elastic in industry B than in A. constant in both industries A and B. more elastic in industry A than in B. relatively inelastic in both industries A and B.
Deborah is a stay-at-home parent who lives in San Francisco and does some consulting work for extra cash. At a wage of $20 per hour, she is willing to work 2 hours per week. At $35 per hour, she is willing to work 11 hours per week.Using the midpoint method, calculate elasticity of Deborah's labor supply.
Suppose that the labor demand for restaurant waiters in a small city is LD = −10 + 20w where w is wage in dollars per hour.1. Derive the formula of the wage-elasticity of labor demand.2. Solve for the wage-elasticity of labor demand at the following wage rates below. Tell whetherlabor demand is elastic, inelastic, or unit elastic at each given wage rate.a. w = 4b. w = 6
11. Calculating the price elasticity of supply Caroline is a retired teacher living in Detroit who coaches youth soccer to supplement their normal income. At an hourly wage rate of $15, they are willing to coach 3 hours per week. Upping the wage to $30 per hour, they are willing to coach 8 hours per week. Using the midpoint method, the elasticity of Caroline's labor supply between the wages of $15 and $30 per hour is approximately that Caroline's supply of labor over this wage range is F which means Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Please show all steps, I want to know all the steps involved. Thank you! Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E ' D and W' are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic. a. %Δ E D = 5, %Δ W = –10 b . E D = 50, W = 7 E'D = 40, W' = 8 c . E D = 80, W = 8 E' D = 100, W' = 6
MICROECONOMICS An effective minimum wage policy in a competitive market will increase unemployment and increase the total earnings of labor only if the demand for labor isA) relatively inelasticB) relatively elasticC) unit elasticD) greater than the supplyE) positively related to the wage rate Please EXPLAIN in depth why relatively inelastic is the CORRECT answer. Please EXPLAIN in depth why relatively elastic is the INCORRECT answer.
Q38 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which labour is an input. What will the elasticity of factor demand be if unit wages rise by 5 percent and the number of employed workers falls by 9 percent? Multiple Choice 1.67. 0.56 1.80 2.36 3.00