EBK ECONOMICS TODAY
18th Edition
ISBN: 9780100663336
Author: Miller
Publisher: YUZU
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Question
Chapter 7, Problem 1CTQ
To determine
The reasons small businesses reduce hiring if wages for unusual skilled workers increase.
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20. Over the last 60 or so years, the percentage of women with paid jobs has increased significantly. Is this increase in female employment associated with an increase in the demand for labor, or is it associated with an increase in the supply of labor?
Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as it desires. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor. What does this indicate about the supply of janitorial services curve? Supply is unit price elastic. Supply is perfectly price elastic. Supply is perfectly price inelastic. Supply is relatively price inelastic.
Economics: Labor Economics
Question:
Native labor demand and supply are given by the following functions: w = 19 - 0.001ED and w = 10 + 0.0005ES
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a.What is the native employment in equilibrium? [a]
b.What is the native equilibrium [b]
Suppose that 2,000 immigrants that are perfectly substitutes for native workers now enter the market and their labor supply is perfectly inelastic.
c.How many natives will be employed after the immigrants enter (round to the nearest whole number)? [c]
d.What is the equilibrium wage for all workers in this market after the immigrants enter (round to the hundredth of a dollar)? [d]
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Chapter 7 Solutions
EBK ECONOMICS TODAY
Ch. 7 - Prob. 7.1LOCh. 7 - Prob. 7.2LOCh. 7 - Prob. 7.3LOCh. 7 - Prob. 7.4LOCh. 7 - Prob. 7.5LOCh. 7 - Prob. aFCTCh. 7 - Prob. bFCTCh. 7 - Prob. cFCTCh. 7 - Prob. dFCTCh. 7 - Prob. eFCT
Ch. 7 - Prob. 1CTQCh. 7 - Prob. 2CTQCh. 7 - Prob. 1FCTCh. 7 - Prob. 2FCTCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16P
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- Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?arrow_forwardHow does the equilibrium price and quantity change when there are demands to increase wages? Are there any changes or none? Provide a graph of your answerarrow_forwardIn a particular industry, labor supply is ES = 10 + w and labor demand is ED = 40 - 4w,where E is the level of employment and w is the hourly wage.(a) What is the equilibrium wage and employment if the labor market is competitive?arrow_forward
- Give typing answer with explanation and conclusion For a long time, your firm has been paying its workers a wage of $20 per hour, and your employees have been happy to work 40 hours per week at this wage. Business is suddenly booming, and your firm would really like your workers to agree to a 50-hour work week to meet this new demand for your product. You are considering two strategies. Under the first, you would raise the wage for all hours worked from $20 per hour to $22 per hour; under the second, you would leave the wage for the first 40 hours per week at $20 but offer $30 per hour for hours worked above 40 hours (that is, you would offer time-and-a-half for overtime). Both strategies have the same cost of $1,100 if a worker chooses to work 50 hours. Which strategy is more likely to lead your employees to agree to a 50-hour work week?arrow_forwardSuppose the number of workers who are allowed to legally immigrate into the country to perform seasonal work has been cut in half. Wages in the affected industries are likely to............ due to a shift of the labor .................curve. a. increase: demand b. decrease : supply c. increase : supply d. decrease: demandarrow_forwardMore firms find they need to hire computer programmers to manage their websites and computer systems. In the market for computer programmers in the short run, we would expect the wage for computer programmers to ___ due to a shift in _____. Group of answer choices decrease : labor demand increase : labor demand increase : labor supply decrease : labor supplyarrow_forward
- Assume that the supply of electrical technicians is low so a firm hires a group of them at $18 per hour. Two years later, due to a recession, the supply of technicians is high so the market rate for them is now $15 per hour. Should the firm pay new hires $18 or $15? Given that the firm bases pay on supply and demand, should it lower the pay of existing mechanics to $15arrow_forwardExplain four ways in which a firm might increase its profits by raising the wages it pays sentence.arrow_forwardAssume that 1,000 workers are employed by the University in jobs paying $10 per hour. After a rise in the minimum wage to $12 per hour, only 900 will be employed. Which statement is true about this example? Overall, the total amount of earnings received by workers has increased. At a wage of $12, the total number of people wanting to work but not getting hired will be 100. Labor demand (the quantity of workers demanded at various prices) appears to be elasticarrow_forward
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