Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 14, Problem 4E
(a)
To determine
Changes in
(b)
To determine
Changes in demand for the related consumer goods.
(c)
To determine
Changes in demand for the related consumer goods.
(d)
To determine
Changes in demand for the related consumer goods
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Consider a firm for which production depends on two normal inputs, labor and capital, with prices w and r, respectively. Initially the firm faces market prices of w = 6 and r = 4. These prices then shift to w = 4 and r = 2.a. In which direction will the substitution effect change the firm’s employment and capital s tock?b. In which direction will the scale effect change the firm’s employment and capital stock?c. Can we say conclusively whether the firm will use more or less labor? More or less c apital?
Solve Input demand and input supply Item1 : Good Q , L labor ,W wage ,A level of technology Q=A0K^alpha L^beta Q=80-P A0=1 K =36 unit L =40+0.5w alpha =0.5 beta =0.5 1. From the condition and price of the labor market equilibrium quantity in item 1, assuming that the price of good Q increases by 10% of the price of P0 Show the change in the price of the labor factor. and the amount of labor factor to be traded in the labor market And along with calculating the income size of both buyers and sellers, labor factors that should be relied on 2.Summarize the theoretical principles of the properties of demand. in factors of production and the factors affecting the change in the price of production factors are obtained when the price of production changes, the quantity of capital k changes, and the level of technology. as well as the supply characteristics of the changing factors
Economics: Labor Economics
Question: 1
If unskilled labor and robotics are substitutes in production a decrease in the price of robotics is predicted to
a. decrease the demand for unskilled labor if the scale effect outweighs the substitution effect.
b. decrease the demand for unskilled labor if the substitution effect outweighs the scale effect.
c. unambiguously increase the demand for unskilled labor.
d. unambiguously decrease the demand for unskilled labor.
Question: 2
Assuming capital is fixed in the short run and variable in the long run what would likely happen to wages in the short and long run following a wave of immigration?
a. a large decrease in the short run, followed by a smaller decrease in the long run
b. a small decrease in the short run followed by a larger decrease in the long run
c. an increase in the short run followed by a large decrease in the long run
d. a decrease in the short run followed by an increase in the long run
Question: 3
Which of the following…
Chapter 14 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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