Suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w). A. (Notes upload) Graph the labour supply if L= 4w. Write the formula for the (total) elasticity of labour supply in this case and substitute out L. After simplifying, the (total) elasticity of labour supply is B. (Notes upload) Graph the labour supply if L-21w. Write the formula for the (total) elasticity of labour supply in this case and substitute out L. After simplifying, the (total) elasticity of labour supply is C. (Notes upload) Graph the labour supply if L = 4w-2. Write the formula for the (total) elasticity of labour supply in this case and substitute out L.
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- QUESTION TWOa) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are wi = K5 and wj = K3 respectively. At the existing wages in labour market I and j, calculate;i. The own wage elasticity of labour demand.ii. Cross elasticity of demand.iii. Is this a well behaved labour demand function?iv. What is the nature of relationship between labour market i and labour market j.b) Discuss the relationship between slope and elasticity of labour demand curve.c) Explain using an example of your choice how technological innovations have the potential to change the structure of demand in the labour market.We are looking at a consumer who should choose how many hours she wants to work, and thus how much free time she gets. Let l symbolize working hours and f free time. The hourly wage is w, and there is a tax rate t on income. Let x be the amount of material goods, and p the price level. a) Explain how the consumer determines his work offer (desired number of working hours). b) What will be the effect on the labor supply of wage increases. Explain in particular what we mean by the substitution and income effect of the wage increase. c) The consumer receives a financial support of z kroner if the net market income is lower than a certain limit (y). Show on a figure what the budget line now looks like. How can the support be thought to affect the labor supply for (i) a consumer who without the support scheme would have an income below the limit, and (ii) a consumer who without the support would have an income above the limit.QUESTION TWOa) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour market j are wi = K5 and wj = K3 respectively. At the existing wages in labour market I and j, calculate;i). What is the nature of relationship between labour market i and labour market j.ii) Discuss the relationship between slope and elasticity of labour demand curve.
- Assume that wages are sticky in a downward direction. Show with the use of a graph what will happen when there is a decrease in labor demand. Label the graph properly.Read the excerpt from the article “ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Use the demand/supply model to answer the questions below: (a) What does the article describe as the main changes to demand for and supply of university enrolments? (b) How would you predict these changes would affect the equilibrium price and quantity of domestic education? Does the article confirm your prediction? (c) Why are ATAR cut-offs predicted to increase? (d) Can you think of a solution to accommodate the change in domestic students’ demand? ATAR cut-offs to soar without more uni places to meet surging demand” from the Age, 17 June 2020 Australian Tertiary Admission Rank cut-offs for popular university courses are expected to soar next year unless surging demand from domestic students is met with an increase in places. Amid a weak job market and fewer traineeships due to the COVID-driven recession, universities warn students turned away from…Suppose that a consulting firm has generated the following information about the economy of Growville: (i) The current employment in export industries is 50,000; (ii) The current total employment in the city is 150,000; (iii) Export employment is expected to grow by 10,000 jobs. a. Is there enough information to accurately predict the effect of the increase in export employment on total employment? b. If you have enough information, predict the employment effect and illustrate your answer with a graph. c. If there is insufficient information, proceed with the analysis as far as you can and list the additional information you need to complete the analysis. Illustrate your answer with a graph.
- Q5 Those working for Amazon have been trying to form a union. Suppose that these workers are successful in forming a union and call themselves the Amazon Delivery Workers. Assume the union successfully negotiated a 14 percent wage increase and the result was that the quantity of labour demanded decreased by 10 percent. Given a fixed labour demand curve, we can conclude that Multiple Choice labour demand is inelastic. the coefficient of elasticity of labour demand is equal to 1. labour demand is elastic. the labour demand curve is upsloping. economies of scale has been achieved.MICROECONOMICS An effective minimum wage policy in a competitive market will increase unemployment and increase the total earnings of labor only if the demand for labor isA) relatively inelasticB) relatively elasticC) unit elasticD) greater than the supplyE) positively related to the wage rate Please EXPLAIN in depth why relatively inelastic is the CORRECT answer. Please EXPLAIN in depth why relatively elastic is the INCORRECT answer.1. In the year 2010, the government decided to construct a thermal plant in a small town called Aboadze in the Western Region. Discuss its impact on equilibrium wage in Aboadzi in the short and long-term.
- Assume that tighter immigration laws cause a reduction in the supply of agriculturalworkers and this leads to higher wages in the sector. Dean’s Fruity Produce Ltd, afarm in Leicestershire, uses two inputs to harvest its output – machines (capital) andagricultural workers. Dean, the managing director of the company, has employedKarishma (a brilliant statistician) and she has estimated that the business’s long-runwage elasticity of labour demand is -1.7. Using isoquant/isocost analysis, explain the possible impact of the higher wages on the output level, total cost of production and input-factor mix of this business in boththe short and long-run and how would your answer change if Karishma had estimated that the long-run wageelasticity of labour demand was -0.4? (1000 words)Consider the market for workers in a cafe. Labor demand equation: Ld=40-2*w Labor supply equation: Ls=4*w-32 w=hourly wage; Ls and Ld are in numbers of workers 1) Suppose that the workers in Café Alice think that their wages are too low and go on a strike. As a result, Cafe Alice agrees to increase the hourly wage to $14. How many workers will remain unemployed after the increase?In a particular industry, labor supply is ES = 10 + w and labor demand is ED = 40 - 4w,where E is the level of employment and w is the hourly wage.(a) What is the equilibrium wage and employment if the labor market is competitive?