Suppose the demand for skilled military personnel is given by the curve L=160−5w, where L is...
Suppose the demand for skilled military personnel is given by the curve L=160−5w, where L is the labor demanded per day in thousands and w is the wage rate. Suppose the supply curve for skilled military personnel is given by L=5w.
What is the equilibrium wage rate and equilibrium employment for skilled military personnel?
The equilibrium wage rate is $16 per hour. The equilibrium quantity of labor is 80 thousand.
Now suppose due to economic problems that the government imposes a wage ceiling of $14.00 on all skilled military personnel.
How many skilled military personnel are demanded? 90 thousand.
How many are supplied? 70 thousand.
This results in a _________ (shortage or surplus?) of _______ thousand skilled military personnel.
Homework Answers
Add Answer to:
Suppose the demand for skilled military personnel is given by
the curve L=160−5w, where L is...
3. The demand and supply functions for labor are as follows: Demand: Supply: L 0.5w L...
3. The demand and supply functions for labor are as follows: Demand: Supply: L 0.5w L 90- w the number of workers e L is the number of workers demanded by firms, L' is supplied by households, and w is the e per worker (ie. the price of labor). wag b. Suppose the government sets a minimum wage of 70. At this minimum wage, how there many workers do firms want to employ? How many workers want to work? Is...
3. The demand and supply functions for labor are as follows: Supply: L0.5w where Ld is...
3. The demand and supply functions for labor are as follows: Supply: L0.5w where Ld is the number of workers demanded by firms, L' is the number of workers supplied by households, and w is the wage per worker (i.e. the price of labor). Solve for the equilibrium wage and the equilibrium number of workers. Illustrate this equilibrium in a graph with w on the vertical axis and L on the horizontal axis. a. b. Suppose the government sets a...
Suppose that you have been hired to analyze the impact on employment from the imposition of...
Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the labor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for the quantity of labor (measured in thousands of workers) and W stands for the wage rate (measured in dollars per hour): Demand: LD 90-5 Supply: -5W First, calculate the free-market equilibrium wage and quantity of labor. The competitive market equilibrium wage...
5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply...
5. Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. 0 125 250 375 500 625 750 875 1000 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0 WAGE (Dollars per hour) LABOR (Thousands of workers) Demand Supply Graph Input Tool Market for Labor Wage (Dollars per hour)...
Now YOU build it! Draw a supply and demand curve for hotel room rentals. Place a...
Now YOU build it! Draw a supply and demand curve for hotel room rentals. Place a point at the equilibrium, and label it E Suppose the government imposes a binding price ceiling on the hotel room market. Draw this price ceiling. Mark the quantity demanded and quantity supplied at the price ceiling, then label the shortage. . А ос 2 W IS Clear All Show Correct Graph
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P -...
Suppose demand and supply are given by Qd = 50 - P and Qs = 0.5P - 10. a. What are the equilibrium quantity and price in this market? Equilibrium quantity: Equilibrium price: b. Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $48 is imposed in this market. Quantity demanded: Quantity supplied: Surplus: c. Determine the quantity demanded, the quantity supplied, and the magnitude of the shortage if a price ceiling...
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 2 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 3. Now suppose the government implements a minimum...
Labour Markets: Consider a hypothetical market for low-skilled labour. For simplicity, assume the short-run supply of...
Labour Markets: Consider a hypothetical market for low-skilled labour. For simplicity, assume the short-run supply of workers is given by the equation Qs = 100 + 10w, where Qs is the quantity supplied and w is the wage. The demand curve is given by Qd = 250 − 5w, whereQd is the quantity demanded. Provide some intuition as to why the elasticities are inelastic. Supposethegovernmentweretoimplementaminimumwage(apricefloor)thatincreased the wage by 50%. Using your calculated elasticities, determine the response of workers and firms....
Problem #4: Own-price elasticity Suppose the market labor demand curve is given by LD-20-(1/2)W and the...
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-2 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 3. Now suppose the government implements a minimum wage (WM) 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)...
3. The demand and supply functions for labor are as follows: Demand: Supply: L 0.5w L 90- w the number of workers e L is the number of workers demanded by firms, L' is supplied by households, and w is the e per worker (ie. the price of labor). wag b. Suppose the government sets a minimum wage of 70. At this minimum wage, how there many workers do firms want to employ? How many workers want to work? Is...
3. The demand and supply functions for labor are as follows: Supply: L0.5w where Ld is the number of workers demanded by firms, L' is the number of workers supplied by households, and w is the wage per worker (i.e. the price of labor). Solve for the equilibrium wage and the equilibrium number of workers. Illustrate this equilibrium in a graph with w on the vertical axis and L on the horizontal axis. a. b. Suppose the government sets a...
Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the labor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for the quantity of labor (measured in thousands of workers) and W stands for the wage rate (measured in dollars per hour): Demand: LD 90-5 Supply: -5W First, calculate the free-market equilibrium wage and quantity of labor. The competitive market equilibrium wage...
Now YOU build it! Draw a supply and demand curve for hotel room rentals. Place a point at the equilibrium, and label it E Suppose the government imposes a binding price ceiling on the hotel room market. Draw this price ceiling. Mark the quantity demanded and quantity supplied at the price ceiling, then label the shortage. . А ос 2 W IS Clear All Show Correct Graph
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 2 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 3. Now suppose the government implements a minimum...
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-2 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 3. Now suppose the government implements a minimum wage (WM) of...
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)...
Most questions answered within 3 hours.
-
1.b. Fiscal policy is said to suffer from ‘crowding out’.
Explain what this means and why...
asked 47 seconds ago -
The equation for the reaction of nitrogen and oxygen to form
nitrogen oxide is written as...
asked 5 minutes ago -
A scientist reproducing some photoelectric effect experiments
shines a light on a metal electrode, but doesn't...
asked 7 minutes ago -
In a study designed to test the effectiveness of magnets for
treating back pain, 35 patients...
asked 27 minutes ago -
Here are summary statistics for randomly selected weights of
newborn girls:
nequals=193,
x overbarxequals=30.5
hg,
sequals=7.3...
asked 17 minutes ago -
Exercise #3:
Create the “MathTest” class. It will have two class variables:
1) a question and...
asked 20 minutes ago -
In epidemiology, how do you calculate the overall incidence of
cure within two groups? What formula...
asked 24 minutes ago -
A 1 liter solution contains 0.357 M ammonium chloride and 0.268
M ammonia. Addition of 0.295...
asked 25 minutes ago -
What are the advantages and disadvantages of using virtual
reality simulations in health care education?
asked 29 minutes ago -
Given input { 66, 28, 43, 29, 44, 69, 19 } and a hash function
h(x)...
asked 50 minutes ago -
A pebble with mass m is thrown straight up with an initial speed
v0 so that...
asked 54 minutes ago -
Let X be a discrete random variable that follows a
binomial distribution with n = 11...
asked 1 hour ago