7. Shifts in labor supplySuppose that a large number of U.S.computer analysts decide to take employment in Europe due to better benefits and work environments atEuropean companies.The following graph shows the labor market for computer analysts in the United States.Show the effect of the emigration on the U.S. labor market for computer analysts by shifting the labor demand curve, the labor supply curve, or both.WAGELABORSupplyDemandDemandSupply?Grade It NowSave & Continue

Supply and demand is an economic model of price determination in a market. It postulates that,…

Answered: 7. Shifts in labor supply Suppose that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Plotting the supply of labor In Providence, 120 people are willing to spend an hour working as pizza makers for an hourly wage of $20. For each additional $5 that the wage increases above $20, an additional 30 people are willing to spend an hour working. For hourly wages of $20, $25, $30, $35, and $40, plot the daily labor supply curve for pizza makers on the following graph. WAGE (Dollars per hour) 50 45 40 35 30 25 20 15 10 5 0 0 + 30 60 90 120 150 180 210 LABOR (Number of workers) 240 270 300 Supply What is one explanation for why this labor supply curve is upward sloping? The opportunity cost of leisure increases as wages increase. O Unemployment benefits are steadily declining. Wages have to increase to accommodate union pressure. O Firms are willing to hire fewer pizza makers at a higher wage.
Note:The answer should be typed.
In Okennewick, 180 people are willing to spend an hour working as pizza makers for an hourly wage of $20. For each additional $5 that the wage increases above $20, an additional 45 people are willing to spend an hour working. For hourly wages of $20, $25, $30, $35, and $40, plot the daily labor supply curve for pizza makers on the following graph. WAGE (Dollars per hour) 50 45 40 35 25 20 15 10 5 0 0 45 + 90 135 180 225 270 315 LABOR (Number of workers) 360 405 450 Supply What is one explanation for why this labor supply curve is upward sloping? The opportunity cost of leisure increases as wages increase. Labor production functions exhibit diminishing marginal returns. Wages have to increase to accommodate union pressure. O Firms are willing to hire more pizza makers at a lower wage.
If the hourly wage is $11, which of the below statements is true? Table 18.2 Workers Total Revenue per Hour 1 $30 $50 3 $65 4 $75 $80
Economics: Labor Economics Question: 1 Migration is expected to occur if movement between two markets is frictionless unless: A. Value of Marginal Product (VMPe) is equal in both markets B. Their populations are equal C. They have the same labor demand function D. Total gains from trade are equal across both markets Question: 2 The market wage increases by 8%. In response the firm reduces its employment by 5%. What is the elasticity of labor demand? Show your work. Is the demand for labor elastic or inelastic? What do you think will happen to this coefficient in the long run? Thank you for your support and help Training Agent!
13. Consider this statement: "In the labor market, businesses supply jobs." Explain what is wrong with this statement, in your own words. Give an example of an accurate statement that could replace it.
2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $270 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output (Units of output) Marginal Product of Labor (Units of output) Value of the Marginal Product of Labor (Dollars) (Number of workers) 0 0 20 1 20 19 2 39 18 3 57 15 4 72 12 5 84 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show 00000
Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…
Discuss labor supply and demand. Besides training and education, what are some of the things that have a significant impact on the supply and demand of labor? Explain why you believe they have such an impact. What other factors can directly influence the labor market?
This table shows the number of cars the local car wash can wash in an hour depending on the number of workers employed. Number of workers 2 4 8 10 12 Total output (number of cars washed per hour) 10 26 40 50 58 62 Use this table to find the marginal product of labor for the following workers: marginal product of labor for the 2nd worker: 5 marginal product of labor for the 6th worker: marginal product of labor for the 12th worker: 5 4
c. Show the effect of each of the following events on the market for labour in the computer tablet manufacturing industry:(i) The government buys tablets for all university students. (ii) More university students graduate in engineering and computer science. (iii) Computer firms build new manufacturing factories. (iv) If the population of the country suddenly grew because of a large immigration, what would you expect to happen to wages? What would happen to the rents earned by the owners of land and capital?
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