You are GIVEN the liberty to construct a hypothetical geometric illustration of Labor Market where you measure the following variables on the specific axis: A On the vertical axis is the WAGE=the Price of Labor (in Pesos per day) B. On the horizontal axis is the QUANTITY of Labor demand and supply (in man-hours per day) REQUIREMENTS: 1. Show the EQUILIBRIUM point by bringing together the DEMAND and SUPPLY of LABOR. Label your graph accordingly. 2. Consider an INCREASE in the wage (as demanded by the labor groups) to a higher level than the equilibrium price for labor. SHOW geometrically what will happen in the labor market. What problem(s) is/are likely to arise in the labor market? 3. In the face of the problem(s) that are now obtaining in the labor market, what would you recommend as a set of policies or programs to address such problems. Illustrate your recommendations geometrically (i.e., graphically).

You are GIVEN the liberty to construct a hypothetical geometric illustration of Labor Market where you measure the following variables on the specific axis: A On the vertical axis is the WAGE=the Price of Labor (in Pesos per day) B. On the horizontal axis is the QUANTITY of Labor demand and supply (in man-hours per day) REQUIREMENTS: 1. Show the EQUILIBRIUM point by bringing together the DEMAND and SUPPLY of LABOR. Label your graph accordingly. 2. Consider an INCREASE in the wage (as demanded by the labor groups) to a higher level than the equilibrium price for labor. SHOW geometrically what will happen in the labor market. What problem(s) is/are likely to arise in the labor market? 3. In the face of the problem(s) that are now obtaining in the labor market, what would you recommend as a set of policies or programs to address such problems. Illustrate your recommendations geometrically (i.e., graphically).

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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