The demand and supply of labour are estimated by W = 28 - 0.001LD and W = 16 + 0.0005LS, where W is the hourly wage rate and L is labour. If the government gives a payroll subsidy of $3 per hour to the employer, the new wage rate employers pay would be: O A. $21 O B. $18 O C. $17 D. $23

The demand and supply of labour are estimated by W = 28 - 0.001LD and W = 16 + 0.0005LS, where W is the hourly wage rate and L is labour. If the government gives a payroll subsidy of $3 per hour to the employer, the new wage rate employers pay would be: O A. $21 O B. $18 O C. $17 D. $23

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter26: Factor Markets: With Emphasis On The Labor Market

Section26.2: The Labor Market

Problem 3ST

See similar textbooks

Related questions

Q: 12 of 15 Which one of the following statements regarding the price-setting curve is true? O If…

A: The curve for determining prices Curve for determining prices When enterprises set their…

Q: A firm that is a labour market monopsony employs labour up to the point where O a. the marginal…

A: Monopsony occurs when the firm's market power is in labour market, generally, monopsony refers to…

Q: 12-1 Explain why the quantity of labor supplied increases with the wage, other things remaining…

A: Assuming that a worker has two options to choose from, he can either choose to work or he can choose…

Q: Assume a monopsony uses only one factor, labor, L, to produce a final good, Q, which it sells in a…

A: Please find the answer below.

Q: Suppose that the demand for electricians in a particular town can be given by the equation: L =…

A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…

Q: Suppose that the labor cost to total cost ratio in industry A is 25 percent, while in industry B it…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The figure below compares labor market outcomes of perfect competition and monopsony. Based on the…

A: Answer - Need to find- Labor market outcome Given in the question-

Q: The figure below depicts the supply (S) and demand (D) for labor in a perfectly competition market,…

A: A market of labor is characterized by the demand and supply curves. The equilibrium occurs at the…

Q: he market for low-skilled workers is highly competitive, due to the high numbers of low skilled…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Figure Al Wage MC $30 $23 $16 $12 8 11 13 Labor Refer to Figure A1. If the government set a minimum…

A: The equilibrium wage rate is determined by equating demand and supply curve. So the equilibrium wage…

Q: What is the effect of an increase in the income tax rate and more generous unemployment benefits on…

A: Increase in tax rate has inverse relation with supply of labor. At higher tax rate people will be…

Q: Table 2 Below is some hypothetical data on the labor market. Quantity Quantity Wage demanded…

A: Minimum wage is an example of price floor where government sets a minimum price that must be paid.

Q: (b) Identify the wage-rental ratio in a diagram with k on the horizontal axis and and W(k) on the…

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of a good or…

Q: How will an increase in offshoring affect the demand for skilled labor and the wages ofskilled labor…

A: Offshoring refers to when the business relocated its supply chain, operations, or production from…

Q: 2. Chicken Hut faces perfectly elastic demand for chicken dinners at a price of $6 per dinner. The…

A: The correct answer is given in the second step.

Q: Select one or more: O a. A rise in labour supply will lead to a rise in wages b. Given a constant…

A: In the labor market, any change in labor supply or labor demand will lead to affect the market…

Q: 1.) Using appropriate diagram (s) explain why the competitive wage is the same across a homogenous…

A: Since multiple questions are asked here, we will answer the first question for you. If you want any…

Q: Suppose that the marginal revenue product of U.S. labor is given by MRP = 250 - L. Also, suppose…

A: (Q) Suppose that the marginal revenue product of U.S. labor is given by MRP = 250 - L. Also, suppose…

Q: The figure below depicts the supply (S) and demand (D) for labor in a perfectly competition market,…

A: Equilibrium in the labor market occurs at the intersection of demand and supply curves of labor.

Q: A profit-maximizing firm will continue to hire workers until O A. the marginal product equals the…

A: Marginal Product(MP) is an extra output by adding a one unit of input in the existing factors. Wage…

Q: Let market demand for domestic workers be represented by Ed = 1000 - 50w where Ed is domestic labor…

Q: part one: Suppose the demand for labor is given by W = 25 – 0.2L and the supply is given by W = 10+…

A: in labour market , equilibrium wage rate is determined through the demand and supply forces of…

Q: b. The programmers in this town are going to work at one of these two places for sure: Their labor…

A: The confluence of labor supply and demand determines the equilibrium market wage rate. Employees are…

Q: Table 28-4 The following data is about the labor market in the city of Productionville. Wage…

A: Minimum wage The minimum amount of money that an employer must pay wage workers for labor…

Q: Giving each firm that hires one or more welfare workers a payment of $1,000 per year, irrespective…

A: A firm demands labor up to the point where the revenue generated exceeds the cost, i.e where the…

Q: The demand for labor is L= 4000 - 300w, where L is the number of workers demanded and w is the…

A: Labor Demand : Ld=4000-300w Labor Supply : Ls=200w Equilibrium wage=$8 Equilibrium quantity of…

Q: If the population of the United States suddenlygrew because of a large wave of immigration,what…

A: Immigration is the international movement of people to a destination country of which they do not…

Q: Labor Demand Data Labor Supply Data Total Product Product Price Employment Wage Rate 0 $ 2.20 0 15…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: Suppose demand for labour is given by: l=-50w+450 and supply is given by l=100w, where ? represents…

A: l=-50w+450 = Demand of Labor l=100w = Supply of labor (a) At equilibrium, Demand of Labor =…

Q: Consider a government which collects tax on wages received by workers to provide public goods. This…

A: Given information Labor demand curve W=400-2L Ls=190 Government imposing tax $10 per unit in…

Q: The demand for unionized labor will generally be more elastic, and it will be more difficult for the…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: In the labour market, suppose one-half of the labour supply has high skills and the other half has…

A: Answer: In the short run, the fraction of skilled workers can not be changed and it will remain at…

Q: Consider the market for labor where both firms and workers are price takers. Output is produced…

A: In the perfect competition the firms are price takers, that is, the firm takes the price as…

Q: When a firm provides specific training, what happens to the gap between the post-training wage and…

A: The marginal product or marginal physical productivity of an input (factor of production) in…

Q: Suppose demand for labor is given by the equation Pp = 25 – 2Qp and supply for labor is given by the…

A: At equilibrium, PD = PS

Q: Find the conditional factor demand for factor æ2 if the firm wants to produce y = 25.1 units of…

A: Given information Production function: y=f(x1,x2)=min(0.5x1,0.3x2) We have to find the conditional…

Q: In the above figure, at what minimum wage is the unemployment level equal to 200 million hours?…

A: Labor, being a factor of production, devotes time, and effort in order to produce goods and…

Q: If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the…

A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…

Q: Since 1960, the earnings gap between men and women in the U.S. labor market has O steadily risen. O…

A: The earning gap between men and women is the average difference between the wage rate for working…

Q: Assume the demand for labor for each firm is expressed as L = N (# of employees) x HBAR(average…

A: Employees = 30 Average working hours = 6 per day for 180 person-hours Minimum 150 person-hours per…

Q: Suppose the market supply is given by L=2.8w. Assume the product market is competitive and the…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: Suppose that the production of a certain product only requires one input, labor, and that the…

A: Marginal Revenue Product is the additional revenue generated by employing one more input factor .…

Q: Walmart, the country's largest retailer by revenue, has long been known for paying its truck drivers…

A: A wage is a sum of money paid by an employer to an employee for work completed over a certain period…

Q: Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of…

A: Since you have asked multiple questions, and according to policy, we can solve only 1 question, and…

Q: 6. The market wage rates for male and female workers are $25 and $10 per worker, respectively. 1…

A: Formula to be used: Profit = Price×Quantity - the cost of employing Profit = P×Q - wf×F - wm×M…

Q: Suppose that the supply curve for private schoolteachers is Ls = 20,000 + 350W, and the demand curve…

A: The demand and supply for particular labor (in this case, teachers) determine the level of…

Q: A firms labor demand and labor supply equations are shown below. Labor demand equation: Ld = 40-…

A: Labor: - labor is one of the factors of production, any physical and mental work by humans against a…

Question

The demand and supply of labour are estimated by W = 28 - 0.001LD and W = 16 +
0.0005LS, where W is the hourly wage rate and L is labour. If the government gives a
payroll subsidy of $3 per hour to the employer, the new wage rate employers pay
would be:
O A. $21
O B. $18
O C. $17
D. $23

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Other than the demand for labor, what would be another example of a 'derived demand?
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys 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 films profit maximizing level of employment?
What determines the demand for labor for a firm operation in a perfectly competitive out market?
What determines the demand for labor for a firm with market power in the output market?
Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm’s MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Given that she is a price taker when hiring bricklayers, how many bricklayers will she hire if the market equilibrium wage for bricklayers is $18.00 per hour? a. Zero. b. Seven. c. Eight. d. Nine. e. More information is required to answer this question
Policymakers sometimes propose laws requiring firms to give workerscertain fringe benefits, such as health insurance or paid parental leave.Let's consider the effects of such a policy on the labor market.a. Suppose that a law required firms to give each worker $3 of fringebenefits for every hour that the worker is employed by the firm. Howdoes this law affect the marginal profit that a firm earns from eachworker at a given cash wage? How does the law affect the demand curvefor labor? Draw your answer on a graph with the cash wage on thevertical axis. b. If there is no change in labor supply how would this law affectemployment and wages? c. Why might the labor-supply curve shift in response to this law? Wouldthis shift in labor supply raise or lower the impact of the law on wagesand employment? d. As discussed in Chapter 6, the wages of some workers, particularly theunskilled and inexperienced, are kept above the equilibrium level byminimum wage laws. What effect would a fringe-benefit…
Suppose that demand is given by p=10Y^(-1/5) and labor supply is w=4L^(2) If marginal product is 10 and market price is 4 then a. What is the wage in a competitive market b. What is the wage in a market where the firm had monopoly power in the goods market c. What is the wage in a market where the firm has monopoly power in the goods market
Supply of construction workers in a small town is given by Qs = 4W- 20, and demand for construction workers is given by Qd 100-2W, where Q is the number of workers and W is the hourly wage. The town government imposes a tax of $1 per hour per construction worker. What percentage of the tax will construction workers end uppaying?OA. 50%O B. 60%OC. 75 %OD. 33%
At the bottom of the page, complete the labor demand table for a fifirm that is hiring labor competitively and selling its product in a competitive market.a. How many workers will the firm hire if the market wage rate is $27.95? $19.95? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.b. Show in schedule form and graphically the labor demand curve of this firm.c. Now again determine the firm’s demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive labor unit. Compare this demand curve with that derived in question 2b (part b of this question). Which curve is more elastic? Explain.
Suppose that the marginal revenue product of U.S. labor is given by MRP = 250 - L. Also, suppose that a total of Ln = 150 native-born U.S. workers supply their labor inelastically. Assume further that the government allows 50 immigrant workers, who are perfect substitutes for native-born workers, to enter the United States. What is the value of the immigration surplus?
(2) Suppose you find the demand (Qd, as thousands) and supply (Qs, as thousands) for long-haul truck drivers in one market can be specified as functions of the yearly wage paid (W, as thousand $) as following. Demand for drivers: Qd = 155 – 1.5 * W, Supply of drivers: Qs = 36 + 0.25 * W, How much is the market equilibrium level of wage for truck drivers (as thousands) and the how many jobs will be in this market? Now you noticed a company pays 40% higher wage than the market equilibrium level to hire truck drivers, how to explain this case?
Suppose demand for labour is given by: l=-50w+450 and supply is given by l=100w, where ? represents the number of people employed and ? is the real wage rate per hour. a) What will be the equilibrium levels for ? and ? in this market? b. Suppose the government wishes to increase the equilibrium wage to $4 per hour by offering a subsidy to employers for each person hired. How much will this subsidy have to be? What will be the new equilibrium level of employment be? How much total subsidy will be paid? c. Suppose instead that the government declared a minimum wage of $4 per hour. How much labour would be demanded at this price? How much unemployment would there be? d. Graph the results.