The wage rate in a labor market is $20. At this wage, firms hire 300 million...
- The wage rate in a labor market is $20. At this wage, firms
hire 300 million hours of work and workers supply 300 million
hours. The elasticity of labor demand is -0.2 and the elasticity of
labor supply is 0.1. Then the government imposes a payroll tax of
$1 per hour of work on firms. After the tax is imposed,
[15 points]
- How much does it cost firms to hire an hour of labor, including cash wage plus tax?
- What cash wage do workers receive?
- How many hours of work are demanded and supplied?
- What are the government’s tax revenues?
- How much consumer surplus is lost by firms?
- How much producer surplus is lost by workers?
- What is the welfare (deadweight) loss?
- Draw and label a supply and demand diagram with all your answers to (a) through (g).
Homework Answers
answering
only first four parts as per HomeworkLib policyAdd Answer to:
The wage rate in a labor market is $20. At this wage, firms
hire 300 million...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hour- ly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b. If the government passes a minimum wage of $9 per hour, what will the new quantity of labor...
1) Suppose the labor market is defined by the following supply and demand curves where w...
1) Suppose the labor market is defined by the following supply and demand curves where w represents the wage rate (measured in dollars per hour) and L represents the quantity of labor (measured in hours). Demand: w = 25 -0.005L Supply: w = 4 +0.002L a) What is the value of worker surplus and firm surplus? (1 point) b) If the government imposes a minimum wage of $13/hour, what is the value of worker surplus and firm surplus? What is...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hourly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b Ifthe government passes a minimum wage of $9 per hour, what will be the new quantity oflabor hired will...
Labor supply = -300 + 30W and Labor Demand = 700-50W c) Suppose the government imposes...
Labor supply = -300 + 30W and Labor Demand =
700-50W
c) Suppose the government imposes a wage floor of $15 in this market. Will be there be a surplus or shortage of workers, and of what magnitude (how many workers)? Surplus or shortage: Magnitude of surplus or shortage
Suppose the graph represents the labor market. Lineshows the relationship between the wage and the n...
Suppose the graph represents the labor market. Lineshows the relationship between the wage and the n f people willing to work. Line the re ip between the wage and the A f shows people firms wish to hire. Quantity (workers) The demand curve for labor exhibits relationship between wage and quantity of workers a direct or positive demanded, and the supply curve of le relationship between wage and the quantity of an inverse people willing to work. an inverse or...
Suppose labor demand in the United States is w = 24 − 0.1E, where E is...
Suppose labor demand in the United States is w = 24 − 0.1E, where E is the number of workers in millions and w is the hourly wage. There are 120 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 20 million low-skill immigrants would enter the U.S. and supply labor inelastically. (a) What is the market-clearing wage if immigration is not allowed? (b) What is the market-clearing wage with open borders,...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
How much will the buyer pay for the product after the tax is imposed? How much will the seller receive after the tax i...
How much will the buyer pay for the product after the
tax is imposed?
How much will the seller receive after the tax is
imposed?
As a result of the tax, what has happened to the level
of output?
Calculate the economic welfare after government imposes
a tax of $5 per unit on buyers.
Total Surplus
Government Revenue
DWL
Producer Surplus
Supply Demand 10 20 30 40 50 60 70 80 Quantity
.1 T-Mobile LTE 14:31 @ 1 15%O Done Photo Photo as the w ord warplus 9...
.1 T-Mobile LTE 14:31 @ 1 15%O Done Photo Photo as the w ord warplus 9 What is the sa m e producer wuples were in this beforth 10. For any type of tax the government imposes supply plus demand equals market price b tax revenue plus deadweight loss equal total lost social welfare. tax revenue plus market price equals deducight loss d. deadweight loss plus economic distortion qualsias Tevere. e total lost social welfare plus tax revenue quals deadweight...
1. Labor market equilibrium is best characterized by: A. A wage at which all people have...
1. Labor market equilibrium is best characterized by: A. A wage at which all people have a job. B. A wage at which all workers are above the poverty level. C. A wage at which the number of people willing to work equals the number of workers firms are willing to hire. D. A minimum wage at which everyone is willing to work. E. All workers receiving their ideal wage. 2. Which of the following affects a person's decision to...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hour- ly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b. If the government passes a minimum wage of $9 per hour, what will the new quantity of labor...
1) Suppose the labor market is defined by the following supply and demand curves where w represents the wage rate (measured in dollars per hour) and L represents the quantity of labor (measured in hours). Demand: w = 25 -0.005L Supply: w = 4 +0.002L a) What is the value of worker surplus and firm surplus? (1 point) b) If the government imposes a minimum wage of $13/hour, what is the value of worker surplus and firm surplus? What is...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hourly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b Ifthe government passes a minimum wage of $9 per hour, what will be the new quantity oflabor hired will...
Labor supply = -300 + 30W and Labor Demand =
700-50W
c) Suppose the government imposes a wage floor of $15 in this market. Will be there be a surplus or shortage of workers, and of what magnitude (how many workers)? Surplus or shortage: Magnitude of surplus or shortage
Suppose the graph represents the labor market. Lineshows the relationship between the wage and the n f people willing to work. Line the re ip between the wage and the A f shows people firms wish to hire. Quantity (workers) The demand curve for labor exhibits relationship between wage and quantity of workers a direct or positive demanded, and the supply curve of le relationship between wage and the quantity of an inverse people willing to work. an inverse or...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...
How much will the buyer pay for the product after the
tax is imposed?
How much will the seller receive after the tax is
imposed?
As a result of the tax, what has happened to the level
of output?
Calculate the economic welfare after government imposes
a tax of $5 per unit on buyers.
Total Surplus
Government Revenue
DWL
Producer Surplus
Supply Demand 10 20 30 40 50 60 70 80 Quantity
.1 T-Mobile LTE 14:31 @ 1 15%O Done Photo Photo as the w ord warplus 9 What is the sa m e producer wuples were in this beforth 10. For any type of tax the government imposes supply plus demand equals market price b tax revenue plus deadweight loss equal total lost social welfare. tax revenue plus market price equals deducight loss d. deadweight loss plus economic distortion qualsias Tevere. e total lost social welfare plus tax revenue quals deadweight...
Most questions answered within 3 hours.
-
A student takes a multiple-choice test that has 10 questions.
Each question has two choices. The...
asked 16 minutes ago -
Willie Keeler has a lifetime batting average of 0.341. Assume
that Willie Keeler came to bat...
asked 18 minutes ago -
Which of the following has the highest boiling point?
A) 0.5m NaCl
B) 0.5m C6H12O6
C)...
asked 37 minutes ago -
12. A firm is producing at an output level where
AR = MC > AC >...
asked 34 minutes ago -
Radovilsky Manufacturing Company, in Hayward, California,
makes flashing lights for toys. The company operates its production...
asked 37 minutes ago -
As an athlete exercises, sweat is produced and evaporated to
jelp maintain a proper body temperature....
asked 36 minutes ago -
Which of these macromolecules is most prevalent (by mass) in the
environment? What particular challenge does...
asked 38 minutes ago -
Consider two stocks. Stock A has a standard deviation of 46% and
stock B has a...
asked 42 minutes ago -
Give a unary language (using only input alphabet ∑={1} )that is
not Turing- recognizable and prove...
asked 53 minutes ago -
1. Write the balanced net reaction for a Ti (s) | TiCl2 (aq) ||
InCl3 (aq)...
asked 50 minutes ago -
3) Answer the following questions:please respond in one
paragraph
In your opinion, what are the crucial...
asked 56 minutes ago -
Assume that the readings at freezing on a batch of thermometers
are normally distributed with a...
asked 1 hour ago