LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 4, Problem 3P
To determine
Calculate the wage and employment level.
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Suppose the supply curve of physicists is given by w=10+5E, while the demand curve is given by w = 50 -3E. Calculate the equilibrium wage and employment level. Suppose now that the demand for physicists increases to w = 70-3E. Assume the market is subject to cobwebs. Calculate the wage and employment level in each round as the wage and employment levels adjust to the demand shock. (Recall that each round occurs on the demand curve - when the firm posts a wage and hires workers). What is the new equilibrium wage and employment level?
Suppose the supply curve of physicists is given by w =10 + 5E, while the demand curve is given by w = 50 - 3 E. Calculate the equilibrium wage and employment level. Suppose now that the demand for physicists increases to w = 70 - 3 E. Assume the market is subject to cobwebs. Calculate the wage and employment level in each round as the wage and employment levels adjust to the demand shock. (Recall that each round occurs on the demand curve—when the firm posts a wage and hires workers.) What are the new equilibrium wage and employment level?
Please only awnser this question I must give uou the previous question below it for context
Please awnser this one:
In the same model of the labour market as in the previous question,Select one or more:a. A rise in labour supply will lead to a rise in wagesb. Given a constant mark-up a rise in labour productivity will lead to higher wagesc. A rise in product market competition will lead to a higher mark-upd. Equilibrium employment is given by the intersection of the wage and profit curves
This one is just for context so you can awnser the question:
Given labour market equilibrium with identical workers, as set out in CORESelect one or more:a. Unemployment is always voluntaryb. Workers who are involuntarily unemployed cannot gain a job at any wagec. A Nash equilibrium existsd. Measured unemployment will be zero
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