In the labour market, workers would like to receive higher wages and firms would like to pay lower wages a. suppose that workers succeed in having a minimum wage established above the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium? b. suppose that firms succeed in having a maximum wage established below the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium?

In the labour market, workers would like to receive higher wages and firms would like to pay lower wages a. suppose that workers succeed in having a minimum wage established above the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium? b. suppose that firms succeed in having a maximum wage established below the equilibrium wage. what will happen to the number of workers employed compared to the original equilibrium?

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 13P

See similar textbooks

Similar questions

Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
“The Prime Minister claims that funding the increase in NHS and social care spending by national insurance [paying higher NICs] is preferable, because firms pay part of the cost. This is a fiction. In the long run the burden of payroll taxes, even those paid by companies, falls on workers, whose wages fall as their employers’ tax bills rise.” The Economist 11-09-202. Is “The Economist” right in its counter-claim? (Hint: use a market equilibrium model of demand and supply for labour)
KINDLY ANSWER quetion "d" 5) (KEY QUESTION) Minimum Wages and Unionsa. Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibriumwage W* is determined, and briefly explain all the concepts in the diagram.b. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in thediagram and explain whether the labour market outcomes in part a. change, and how.c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in thediagram and explain what the labour market outcomes will be.d. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above bothW* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to theprevious part
Economics: Labor Economics Question: Labor demand and supply are given by w = 50 - 3Ed and w = 10 + Es. Please show work for each part. a.What is the equilibrium wage of this market? [a] b.What is the equilibrium number of workers employed in this market? [b] Suppose now a tax of $5 is added into this market. c.How much do workers receive as wage after this payroll tax? [c] d.How much do firms have to pay workers after this payroll tax? [d] e.What is the government tax revenue as a result of this payroll tax? [e] f.What is the amount of deadweight loss generated as a result of this payroll tax (do not round, write out entire number)? [f] Thank you for your support and help Study Agent!
How do minimum wages affect wages, employment, and unemployment? In a competitive labor market, the demand for workers is given as QD = 10,000 - 100W, and the supply of workers is given as QS = 2,000 + 1,900W, where Q is the quantity of workers employed and W is the hourly wage. What is the initial equilibrium wage and employment level? Suppose that the government decides that $5 per hour is the minimum allowable wage in any market. How would this new minimum wage alter this market? What would the new employment level be? What would happen to total payments to labor? Would there be any excess supply of labor? If so, how much?
Does Ireland's government have regulations to hire a certain percentage of local staff to support the local economy?
A visiting American executive finds that a foreign subsidiary inBangladesh has hired a 12-year-old girl to work on a factoryfloor, in violation of the company's prohibition on child labour.He tells the local manager to replace the child and tell her to goback to school. The local manager tells the American executivethat the child is an orphan with no other means of support, andshe will probably become a street child if she is denied work. explain Cultural Relativist based on the statement given
Would increasing the minimum wage force business's to lay off workers and result in higher unemployment or would it encourage economic growth and increased commerce?
Please awnser the following questions and carefully label , and briefly explain the following diagrams. You are welcome to write any accompanying text by hand. 5. Show how the diagram changes if there is an improvement in the technology of food production.Hint: this means that for a given number of hours’ work, Angela can produce more. 5.2. If Angela is an independent farmer, show how the technology improvement might cause heroptimal labour supply to either fall or rise. Which seems more consistent with the data?
Suppose two countries are considering a new agricultural trade agreement with each other. CountryA has abundant low-skill labor and scarce land.Country B has abundant arable land but little population. In which country do land owners supporta trade agreement? In which country do workerssupport a trade agreement?
In a __________ marriage, both husband and wife are in the labor market.
the supply of labor will not change if all pricess and wage rates increase by the same percentage? is that is false