Economists Mark Blaug and Ruth Towse studied the market for economists in Britain and found that the quantity demanded was about 150 to 200 a year, and that the quantity supplied was about 300 a year. What likely to happen when there is a surplus of economists in Britain? Economists will form a strong labor union in order to maintain high wages for themselves. They will also push for stronger comparable worth laws. The elasticity of labor supply will rise for economists because the quantity of labor supplied will increase by a greater percentage than the wage. When there is an elastic supply of labor, wages tend to fall in the long run. Economists will immigrate to countries with an excess supply of economists. This is an example of the incentive effect. Some economists will leave this labor market and either start their own business or accept jobs in other markets or in other countries. This would mitigate the decline in economists' wages

Economists Mark Blaug and Ruth Towse studied the market for economists in Britain and found that the quantity demanded was about 150 to 200 a year, and that the quantity supplied was about 300 a year. What likely to happen when there is a surplus of economists in Britain? Economists will form a strong labor union in order to maintain high wages for themselves. They will also push for stronger comparable worth laws. The elasticity of labor supply will rise for economists because the quantity of labor supplied will increase by a greater percentage than the wage. When there is an elastic supply of labor, wages tend to fall in the long run. Economists will immigrate to countries with an excess supply of economists. This is an example of the incentive effect. Some economists will leave this labor market and either start their own business or accept jobs in other markets or in other countries. This would mitigate the decline in economists' wages

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 32P: Imagine that to preserve the traditional way of life in small fishing villages, at government...

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During a discussion several year; ago on building a pipeline to Alaska to carry natural gas, the U.S. Senate passed a bill stipulating mat there should be a guaranteed minimum price for the natural gas that would flow through line pipeline. The thinking behind the bill was that if private firms had a guaranteed price for their natural gas, they would be more willing to drill for gas and to pay to build the pipeline. Using the demand and supply framework, predict the effects of this price floor on fine price, quantity demanded, and quantity supplied. With the enactment of this price floor for natural gas, what are some of the likely unintended consequences in line market? Suggest some policies other than the price floor that he government can pursue if it wishes to encourage drilling for natural gas and fur a new pipeline in Alaska.
Imagine that to preserve the traditional way of life in small fishing villages, at government decides to impose a price floor that will guarantee all fishermen a certain price for their catch. Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied. With the enactment of this price floor for fish, what are some of the likely unintended consequences in file market? Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
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A low-income county decides to set a price ceiling on bread so it can make sure that bread is affordable to the poor. Table 3.11 provides the conditions of demand and supply. What are the equilibrium price and equilibrium quantity before the price ceiling? What will the excess demand or the shortage (that is, quantity demanded minus quantity supplied) be if the price ceiling is set at 2.40? At 2.00? At 3.50?
A. If the minimum wage is above W*, would there be a shortage or a surplus or neither in the labor market? Illustrate the minimum wage (Wmin), the quantity demanded at the minimum wage (QD^min), the quantity supplied at the minimum wage (Qs^min) , and wether there is a surplus or a shortage or neither on the graph above. B. If the minimum wage is below W* , would there be a shortage or a surplus or neither ? ( hint: it’s a minimum wage) C. Give atleast one argument for and one argument against having minimum wage that is above the equilibrium wage
Imagine that to preserve the traditional way oflife in small fishing villages, a government decides toimpose a price floor that will guarantee all fishermen acertain price for their catch.a. Using the demand and supply framework,predict the effects on the price, quantitydemanded, and quantity supplied.b. With the enactment of this price floor for fish,what are some of the likely unintendedconsequences in the market?c. Suggest some policies other than the price floorto make it possible for small fishing villages tocontinue.
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