Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 5SPA
To determine
The changes in the demand for labor and number of students.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The province of BC is increasing the wage of family doctors from $250,000 to $385,000. A local radio announcer interviewed the Health Minister and said “Woe, that’s a lot of money. It’s too much.”
In a graph below draw the labor market for family doctors in BC. In terms of economics, what would it mean if the new wage was “too much”? (i.e. show on the graph)
Currently in the province, under the old wage, 20% of the population (a million people) are unable to access a family doctor. Replicate your graph from (a) and show this current situation. Do you think the new wage is going to be “too much”?
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
4.
The graph below represents Lisena’s Landscaping Service’s demand for labor in the town of Forest Hills. The price of cutting a standard-sized residential lawn is $50 and the market wage rate for a worker is $200 per day. Answer the questions below.
a. At the current market wage rate how many workers will the firm hire?b. Which economics principle can be used to explain why Lisena should NOT hire a fifth worker?c. What is the minimum number of lawns each worker should cut per day given wage rate of $200? Explain with a calculation.d. What happens to the demand for labor curve if the market price of cutting a lawn increases to $65? Explain your answer.e. What happens to the demand for labor curve if the market wage rate increases from $200 per day to $250 per day? Explain your answer.
Suppose that quantum computers, which are much faster than computers today, are invented and that firms want to employ these computers at the work place. Unfortunately, not just anyone can operate a quantum computer; it requires a lot human capital.
Use your knowledge of the supply and demand for unskilled and skilled labor to:
1. Draw a graph of the unskilled and skilled labor
2. Show the effect on wages in these markets.
Chapter 18 Solutions
Macroeconomics
Ch. 18.1 - Prob. 1RQCh. 18.1 - Prob. 2RQCh. 18.1 - Prob. 3RQCh. 18.2 - Prob. 1RQCh. 18.2 - Prob. 2RQCh. 18.2 - Prob. 3RQCh. 18.2 - Prob. 4RQCh. 18.3 - Prob. 1RQCh. 18.3 - Prob. 2RQCh. 18.3 - Prob. 3RQ
Ch. 18.3 - Prob. 4RQCh. 18.3 - Prob. 5RQCh. 18.3 - Prob. 6RQCh. 18.4 - Prob. 1RQCh. 18.4 - Prob. 2RQCh. 18.4 - Prob. 3RQCh. 18.4 - Prob. 4RQCh. 18.4 - Prob. 5RQCh. 18 - Prob. 1SPACh. 18 - Prob. 2SPACh. 18 - Prob. 3SPACh. 18 - Prob. 4SPACh. 18 - Prob. 5SPACh. 18 - Prob. 6SPACh. 18 - Prob. 7SPACh. 18 - Prob. 8SPACh. 18 - Prob. 9SPACh. 18 - Prob. 10SPACh. 18 - Prob. 11APACh. 18 - Prob. 12APACh. 18 - Prob. 13APACh. 18 - Prob. 14APACh. 18 - Prob. 15APACh. 18 - Prob. 16APACh. 18 - Prob. 17APACh. 18 - Prob. 18APACh. 18 - Prob. 19APACh. 18 - Prob. 20APACh. 18 - Prob. 21APACh. 18 - Prob. 22APACh. 18 - Prob. 23APACh. 18 - Prob. 24APACh. 18 - Prob. 25APACh. 18 - Prob. 26APACh. 18 - Prob. 27APA
Knowledge Booster
Similar questions
- Name some factors that can cause a shift in the demand curve in labor markets.arrow_forwardMa4. 1. Labor Markets (a) Sketch a graph of a competitive labor market for fast food workers, showing a hypothetical equilibrium wage and quantity of workers. (b) On that same graph (or a new one if it gets too hard to follow), show what would happen to labor demand and/or supply and the new equilibrium from each of the following changes: i. Childcare gets much more expensive. ii. Grocery stores begin paying their employees significantly more. iii. Better training allows workers to become 15% more productive. iv. Customers become more health-conscious and try to reduce their fast food intake.arrow_forwardPhil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. Now suppose during the holiday season the price of poster-size copies increases to $12. What happens? The demand for labor decreases The demand for labor increases The quantity demanded of labor decreases but the demand for labor curte does not shift The quantity demanded of labor increases, but the demand for labor curve does not shiftarrow_forward
- Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. Now suppose during the holiday season the price of poster-size copies increases to $12. What happens? The demand for labor decreases. The demand for labor increases. The quantity demanded of labor decreases, but the demand for labor curve does not shift. The quantity demanded of labor increases, but the demand for labor curve does not shift.arrow_forwardWhich of the diagrams illustrates the effect of an increase in automobile worker wages on the market for automobiles? i dont understand why it would be D.arrow_forwardIf the minimum wage increased in december 01,2019 from $ 15 to $17.50 . Illustrate this new minimum wage on the diagram.arrow_forward
- 1. ABC firms is selling potatoes in a perfectly competitive product market and hires farmers in a perfectly competitive market. Assume that the market wage rate for farmers is $150 per day. a. What rule should ABC follow to hire the profit-maximizing amount of labor? b. At the profit-maximizing level of output, the marginal product of last worker hired is 30 pounds of potatoes per day. Calculate the price of a pound of potatoes. c. Draw a diagram of the labor market for potatoes next to a diagram of the labor supply and demand for ABC. Label the equilibrium wage and quantity of labor for both the market and the firm. How are these diagrams related? d. Suppose some farmers switch to jobs in the service industry. On the side-by-side diagrams from part (c ), show how this change affects the equilibrium wage and quantity of labor for both the potatoes market and for ABC. How does this change affect thearrow_forwardThe New York Times cost $0.15 in 1970 and $2.00 in 2011. The average wage in manufacturing was $3.36 per hour in 1970 and $23.09 in 2011.By what percentage did the price of a newspaper rise?arrow_forwardThe following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. (graph in image) In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 12 8 True or False: A minimum wage…arrow_forward
- In 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages. Graph and answer the following Change in demand and supply Change in equilibrium price and quantityarrow_forwardConvince me that the minimum wage should NOT be increased. Use microeconomics terms. Cite examples.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax