Question

equilibrium wage?

Question 6 1 points Save Answer Consider the following labor market Labor demand: Lap- w Labor supply: LS as 2w where w is th

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Initially the market has

Ld = 100000 - w and Ls = 10000 + 2w

This gives

100000 - w = 10000 + 2w

w* = 90000/3 = $30000

It is given that the equilibrium wage will remain unchanged in both cases. Select the first option, wage = $30,000.

Add a comment
Know the answer?
Add Answer to:
equilibrium wage? Question 6 1 points Save Answer Consider the following labor market Labor demand: Lap-...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • demand and supply Question 7 1 points Save Answer Consider the following labor market Labor demand:...

    demand and supply Question 7 1 points Save Answer Consider the following labor market Labor demand: LD = ad-w Labor supply: LS = as - 2w where w is the wage, L is the number of workers, ap and as are constants Now suppose that business owners predict low sales next year so they reduce hiring and as a result, ap=70,000 and as=10,000. But in this scenario wages are totally rigid and cannot adjust this year from its original level...

  • Consider the following labor market Labor dernand: LD ap- w Labor supply: LS = as+ 2w...

    Consider the following labor market Labor dernand: LD ap- w Labor supply: LS = as+ 2w where w is the wage, L is the number of workers, ap and as are constants Now suppose that business owners predict low sales next year so they reduce hiring and as a result, ap 70,000 and ag 10,000. But in this scenario wages are totally rigid and cannot adjust this year from its original level (i.e. when ap=100,000 and as10,000): find the equilibrium...

  • Consider the following labor market Labor demand: LD = ap - w Labor supply: LS =...

    Consider the following labor market Labor demand: LD = ap - w Labor supply: LS = as + 2w where w is the wage, L is the number of workers, ap and as are constants Now suppose that business owners predict low sales next year so they reduce hiring and as a result, ap=70,000 and ag=10,000. But in this scenario wages are totally rigid and cannot adjust this year from its original level (i.e. when ap=100,000 and ag=10,000): find the...

  • What is the equilibrium employment level? Question 2 Consider the following labor market Labor demand: L...

    What is the equilibrium employment level? Question 2 Consider the following labor market Labor demand: L ap- w Labor supply: LS = as 2w where w is the wage, Lis the number of workers, ap and as are constants a) Suppose that ap 100,000 and as10,000: find the equilibrium employment level L*30,000 L*35,000 L60,000 L70,000

  • where w is the wage, L is the number of workers, aD and aS are constants...

    where w is the wage, L is the number of workers, aD and aS are constants Suppose business owners predict low sales next year, so they reduce hiring. As a result, aD=70,000 and aS=10,000. Using the diagram for the labor market, answer what would happen to the demand and supply curves: Question 3 Consider the following labor market Labor demand: LD - ad-w Labor supply: LS = 35 + 2w where w is the wage, L is the number of...

  • Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD 20- (1/2)W...

    Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD 20- (1/2)W and the market labor supply curve is given by LS-2W 1. Graph the labor demand curve and the labor supply curve on the same graph (with L on the horizontal axis and W on the vertical axis, as we have done in class). 2. Determine the equilibrium employment (L") and wage (W") in this market. Now suppose the government implements a minimum wage (WM)...

  • Problem 1. (Minimum Wage) (20 points): Given the following labor demand and supply curve Ls 10w...

    Problem 1. (Minimum Wage) (20 points): Given the following labor demand and supply curve Ls 10w Lo 80-10w where w is the wage rate, and Ls is quantity of labor suppplied and Lo is quantity demanded for labor. a) Suppose the state government imposes a minimum wage of $5, how many people keep their jobs after the mininmum wage policy is implemented? b) Who are winners and losers in this case? (3 points) c) What is the employers's gain or...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT