Question
Asked Oct 4, 2019
9 views

Resource Price (Labor Market)

What do you expect businesses would do if the average wage was below equilibrium?  What if it's above?   How would this affect unemployment?

 

HW question above.

check_circle

Expert Answer

Step 1

For any business to expand and sell more in the market, it has to reduce and minimize its inputs such as raw materials and labor costs. At the stage, where the average wage is below the equilibrium, it would lead to a higher demand fo...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes,...

A: A study showing that eating oranges reduces the risk of diabetes will increase the demand of oranges...

question_answer

Q: How does a college education increase ones human capital

A: Human capital constitutes the knowledge, experience and skills an individual has. It is generally ca...

question_answer

Q: (In this question we denote income by Y, not by W as in the lecture notes). The following figure sho...

A: Here, x cap is the initial demand for good x. When the price falls from Px to P’x:the substitution e...

question_answer

Q: 1. Mary buys three goods: A, B, and C. When her income rises she buys less of good B and more of goo...

A: 1)A normal good is elastic in nature with respect to income and demand for the good. In this case Ma...

question_answer

Q: Show the effect this hurricane on the sweat shirt

A: If a hurricane hit North Carolina and damages the crop of cotton then there will be an increase in t...

question_answer

Q: A key factor that leads to economic growth is?

A: The key factors that leads to an economic growth are human resources, physical capital, natural reso...

question_answer

Q: Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its        ...

A: Part 1) When price of good X decreases by 5% , consumption of good X will increase by 15%

question_answer

Q: Kevin and Maria are farmers. Each one owns a 20-acre plot of land. The following table shows the amo...

A: Each of them owns 20 acres of land. Kevin can produce either 40*20 =800 bushels of Alfalfa or 8*20 =...

question_answer

Q: How do you create a concave production possibilites curve graph?

A: A production possibility curve (PPC) is defined as the curve that represents combination of 2 goods ...