Let's take another look at the minimum wage. A. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. B. Is the minimum wage similar to any of the models in chp 17? If so which one? C. Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Is there a different result for equilibrium price and wage you outlined in #1, If so, what would that be ?

Let's take another look at the minimum wage. A. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. B. Is the minimum wage similar to any of the models in chp 17? If so which one? C. Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Is there a different result for equilibrium price and wage you outlined in #1, If so, what would that be ?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...

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Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Consider two labour markets that are identical, aside from the fact that one is a monopsony and the other is perfectly competitive. a) Which labour market would you expect to pay the higher wage? Explain. b) Which labour market would you expect to have the higher level of employment? Explain. c) Now, assume that the government implements a minimum wage in both labour markets. Specifically, the minimum wage is set equal to the perfectly competitive labour market's equilibrium wage. i) Do you expect the new minimum wage to increase/decrease/not affect the wage level in the monopsonistic labour market? Do you expect the new minimum wage to increase/decrease/not affect the employment level in the monopsonistic labour market? Explain. ii) Do you expect the new minimum wage to increase/decrease/not affect the wage level in the perfectly competitive labour market? Do you expect the new minimum wage to increase/decrease/not affect the employment level in the perfectly competitive labour…
Let's take another look at the minimum wage. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. Is the minimum wage similar to any of the models in chp 17? If so which one? Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Show this on your graph. Is there a different result for equilibrium price and wage you outlined in #1. If so, what would that be ?
Let's take another look at the minimum wage. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. Is the minimum wage similar to any of the union models in chp 17? If so which one? 3. Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis, AND your answer to #2? What might that be? Is there a different result for equilibrium price and wage you outlined in #1. If so, what would that be ?
Suppose the government imposes a price floor in the labor market (minimum wage legislation). In your answer, be sure to examine the potential impact on unemployment and the potential impact on small businesses. a) what happens to the amount of market exchange, i.e., what happens to the number of workers actually hired. Explain carefully. b) does the regulation benefit the group it is meant to? Explain c) is result outcome efficient? Explain
PLEASE SOLVE PART C & D ONLY 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.
Figure shows the ratio of the federal minimum wage to the average hourly manufacturing wage.a. Describe how this ratio has changed from the 1950s to the 1990s. What might have caused this apparent shift in fundamental economic behavior in the United States?b. This ratio fell steadily from 1968 to 1974 and again from 1980 to 1990, but the underlying dynamics of the minimum wage and the average manufacturing wage were different during the two time periods. Explain.
Let's say that the prevailing wage rate is $15. You(the Queen or King) are thinking of proposing a minimum wage of $20 or $10. a) Is the $20 proposal a price ceiling or floor? Is the $10 proposal a price ceiling or floor? b)Who is the buyer and seller? (demand curve, supply curve)? c)What would be the result of both policies. i.e.would this result in a surplus or shortage, and what would you call this?
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
Provide a briefly explanation for the determination of wage. Support your explanation with and appropriate diagram. The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 14 + 2W a.Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?b.Suppose the town government imposes a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?
The minimum wage law may distort the market for non-skilled labor. To reduce the distortion, some economists suggest a two-tier minimum wage system, where employees over age 19 have a minimum wage and employees under age 20 could earn wages below that figure. Give two reasons why economists think the minimum wage affects the under-20 labor market more than others
The table shows levels of employment (Labor), the marginal product of each of those levels, and a monopoly's marginal revenue. What is the monopoly's marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is $20, what is the firm's profit maximizing level of employment?