Question No. 2If the demand and supply of labor in the city of Binar is stated as follows:DL = 10,000 – ½ W, where DL is the demand for labor per day (in thousand people).SL = -1000 + 2W, where SL is the supply of labor per day (in thousandpeople). Note: W = daily wage per worker (in thousand rupiah).Calculate:a) Labor market balance.b) The number of job opportunities available every day.When the government feels that labor wages are low and intends to increase it, thenProvincial Minimum Wage can be set at IDR 6,000Calculate:c) Total demand for labor.d) Total supply of labor.Describe your analysis:e) Please provide your analysis of the results of the initial equilibrium (parts a and b); withthe result of the increase in the Provincial Minimum Wage (sections c and d) associated with the market mechanism. ExistWhat economic phenomena can you conclude? Please solve all parts because every part is relationship The narration below is for question number 2.A description of the Market Mechanism (Demand and Supply) whichis very relevant to the current actual conditions.If an item/service is getting scarcer, then the market will signal anincrease in price. On the other hand, if the goods/services are availablein large quantities, the market will give a signal of a decline in prices.How about Indonesia? Approaching Ramadan, Eid al-Fitr, Christmasor New Year, prices of meat, eggs, flour, vegetables gradually moveup.The price of transportation is also not left behind, high berrek. But, onnormal days, the price moves towards normal again. Uniquely, there are commodities that are very abundant and ofinadequate quality, but the prices are set relatively high, as if thesecommodities are relatively rare. This commodity is a factor of laborproduction. In Indonesia, the minimum wage is determined by thegovernment based on the province (UMP). The UMP figure isdetermined based on certain basic formulas plus consideration of otherfactors. Every year each province raises the UMP by taking intoaccount the inflation rate and the rate of economic growth.In economics, setting the minimum wage is a price control measure bythe government to protect the producer/supplier side; while protectingthe small people who work as laborers and/or farmers. Thus, the goalof UMP is noble. But if you are not careful, it will make the future ofthe little people miserable.

Businesses require labour and capital as inputs into their manufacturing process to generate goods…

Answered: Question No. 2 If the demand and…

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Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

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Question No. 2

If the demand and supply of labor in the city of Binar is stated as follows:
DL = 10,000 – ½ W, where DL is the demand for labor per day (in thousand people).
SL = -1000 + 2W, where SL is the supply of labor per day (in thousand
people). Note: W = daily wage per worker (in thousand rupiah).
Calculate:

a) Labor market balance.
b) The number of job opportunities available every day.

When the government feels that labor wages are low and intends to increase it, then
Provincial Minimum Wage can be set at IDR 6,000
Calculate:
c) Total demand for labor.
d) Total supply of labor.

Describe your analysis:
e) Please provide your analysis of the results of the initial equilibrium (parts a and b); with
the result of the increase in the Provincial Minimum Wage (sections c and d) associated with the market mechanism. Exist
What economic phenomena can you conclude?

Please solve all parts because every part is relationship

The narration below is for question number 2.
A description of the Market Mechanism (Demand and Supply) which
is very relevant to the current actual conditions.
If an item/service is getting scarcer, then the market will signal an
increase in price. On the other hand, if the goods/services are available
in large quantities, the market will give a signal of a decline in prices.
How about Indonesia? Approaching Ramadan, Eid al-Fitr, Christmas
or New Year, prices of meat, eggs, flour, vegetables gradually move
up.
The price of transportation is also not left behind, high berrek. But, on
normal days, the price moves towards normal again.

Uniquely, there are commodities that are very abundant and of
inadequate quality, but the prices are set relatively high, as if these
commodities are relatively rare. This commodity is a factor of labor
production. In Indonesia, the minimum wage is determined by the
government based on the province (UMP). The UMP figure is
determined based on certain basic formulas plus consideration of other
factors. Every year each province raises the UMP by taking into
account the inflation rate and the rate of economic growth.
In economics, setting the minimum wage is a price control measure by
the government to protect the producer/supplier side; while protecting
the small people who work as laborers and/or farmers. Thus, the goal
of UMP is noble. But if you are not careful, it will make the future of
the little people miserable.

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