how do i find the change in the wage rate when im not given a wage but have:sales revenue = 80 payments to labor = 80 payment to capital = 40 and the change in price = 25% in the Sarong industry and sales revenue = 80 payments to labor = 30 payments to capital = 60 and the change in price = 0% in the beer industry

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Asked Oct 8, 2019
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how do i find the change in the wage rate when im not given a wage but have:

sales revenue = 80 payments to labor = 80 payment to capital = 40 and the change in price = 25% in the Sarong industry and 

sales revenue = 80 payments to labor = 30 payments to capital = 60 and the change in price = 0% in the beer industry

 

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Expert Answer

Step 1

Payment to labor is simply means the wage rate. In other words, wage is the remuneration received by labor for his supply of labor hours. In the given question, previous wage rate is 80 and the present wage rate is 30. Then, the change in wage rate can be calculated from these two values.

Step 2

Calculation of change in wage...

Wage ratepresent-WageratePrevi ous
Wage rateprevious
Change in wage rate
30-80
80
-50
80
=-0.625
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Image Transcriptionclose

Wage ratepresent-WageratePrevi ous Wage rateprevious Change in wage rate 30-80 80 -50 80 =-0.625

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