EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 8220100605932
Author: Blinder
Publisher: Cengage Learning US
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Chapter 19, Problem 8DQ
To determine
Explain the phenomenon.
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EBK ECONOMICS: PRINCIPLES AND POLICY
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- The market for plumbers in Boston is currently in equilibrium. Labor supply is given by Ls = 3 x W and labor demand is given by Ld = 45 - W (where L = quantity of workers, Ls quantity of workers supplied, Ld = quantity of workers demanded, and W = wage). The plumbers have just unionized and have negotiated a wage of $25 for all plumbers in Boston. How many plumbers do you expect to be unemployed as the result of this change? Please round your answer to the nearest integer. %3D %3D %3Darrow_forwardExplain four ways in which a firm might increase its profits by raising the wages it pays.arrow_forwardBy Labor Economics theory, what are the short-run and long-run effects of immigration on the wages of native workers? Use diagrams to illustrate your arguments. Describe the evidence of these effects presented in the chapter.arrow_forward
- To save money, some fast food chains are now having their customers place their orders at computer kiosks. Will the kiosks necessarily reduce the total number of workers employed in the fast food industry?arrow_forwardHow might a company continue to do business without paying higher wages?arrow_forwardLatin American and Caribbean citizens who migrate to the United States earn salaries there that are higher than what they were earning at home. Since the migrants have the same skills as when they lived in these regions, why are they apparently more productive in the United States?arrow_forward
- Describe what happens to quantity of labor supplied when wages are at the equilibrium level, above equilibrium, and below equilibrium.arrow_forwardWhich of the following is likely to shift the labor supply curve to the right, assuming all else equal? A rise in the wage rate A fall in the wage rate A rise in the immigration of workers in search of better work opportunities A fall in the population of a country due to a natural disasterarrow_forwardHow would each of the following factors be likely to affect the economy-wide supply of labor? ** A. The relaxation of immigration law that causes an influx of immigrants into the U.S. B.The age at which people are eligible for Medicare is decreased. C.Social Security benefits are made less generous. D.War preparations lead to the institution of a national draft, and many young people are called up.arrow_forward
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