EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
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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The graph on the right shows the labor demand curve for television
manufacturers.
What would be the impact on labor demand if there is
an increase in input costs for televisions?
1.) Using the line drawing tool, draw the new labor demand curve for television
firms that would result from an increase in input costs for televisions. Label your
curve 'New labor demand.'
Carefully follow the instructions above and only draw the required object.
C
Wage
Labor
demand
Quantity of labor demanded
C

Time remaining:
01:59:36
Economics
Operum is a firm that hires unskilled laborers in a perfectly competitive factor market. (a) Draw side-by-side graphs for the whole labor market and for Operum. Label the market supply SL, the market demand DL, the equilibrium wage WE, the equilibrium quantity QE, the wage paid by Operum WO, and the quantity hired by Operum QO. (b) Is WE greater than, equal to, or less than the marginal factor cost of unskilled labor at QO? Explain. (c) The government institutes an effective minimum wage for unskilled labor. Illustrate this on your graphs from part (a). Label the minimum wage WMin. On the graph for Operum, label the new quantity of unskilled labor employed QMin. (d) Ceteris paribus, how will the minimum wage from part (c) affect the market's demand for unskilled labor and its quantity demanded unskilled labor—will each increase, decrease, or stay the same? Explain. (e) Will the minimum wage cause the marginal revenue product of Operum's last…
Complete the following table with the profit-maximizing quantity of labor each salon will hire, along with the wage it will pay for each hour of labor.
Labor
Wage
Town 1
Town 2
In Town 1, the salon pays a wage that is
wage is
the marginal value product of the final unit of labor hired, whereas in Town 2, the
the marginal value product of the final unit of labor hired.
The outcome in
with respect to changes in the wage.
is farther from that of a competitive market, given that the supply of labor is
elastic (at the market equilibrium)
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_forwardGive typing answer with explanation and conclusion Workers in a certain occupation will soon require a government issued licence to legally practice in that occupation. To get the new licence workers will need to study and pass an ex*m and then pay for a licence. Employers who provide this service will need to close their shop unless they employ these licensed employees to serve the public. Based on this information: a) Briefly discuss how in the near term this new development will change the Supply of labour in this occupation. b) Briefly discuss how in the near term this new development will change the Demand for labour in this occupation. c) Briefly discuss how this development will affect the equilibrium wage rate and the number of workers employed in the occupation.arrow_forwardMake use of graph (one graph for each question) to describe briefly what the influence of each of the following would be on supply OR demand of labour: 1. An increase in students studying full time 2. An equal increase in the price and productivity of labour 3. A decline in the price of a substitute for a particular type of labourarrow_forward
- Suppose a firm purchases labour in a competitive labour market and sells its product in a competitive product market. The firm’s elasticity of demand for labour is 0.4. Suppose further that the wage increases by 5 percent. What will happen to the amount of labour hired by the firm?arrow_forwardTrue or false explain this a) In a competitive labor market, the price of labor is determined by the industry that hires the labor.arrow_forwardExplain the effect of an increase in demand for tomatoes on demand or supply of tomato pickers. What is the effect on wages of tomato pickers and the number of tomato pickers hired.arrow_forward
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