Charles is a volunteer fire fighter living in San Diego who coaches youth soccer to supplement their normal income. At an hourly wage rate of $40, they are willing to coach 6 hours per week. Upping the wage to $55 per hour, they are willing to coach 8 hours per week. Using the midpoint method, the elasticity of Charles’s labor supply between the wages of $40 and $55 per hour is approximately , which means that Charles’s supply of labor over this wage range is .
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- Paolo is a college student who lives in Chicago and provides math tutoring for extra cash. At a wage of $50 per hour, he is willing to tutor 7 hours per week. At $65 per hour, he is willing to tutor 10 hours per week. Using the midpoint method, the elasticity of Paolo’s labor supply between the wages of $50 and $65 per hour is approximately ........................(0.09/0.74/1.35/42.5), which means that Paolo’s supply of labor over this wage range is ..........................(elastic/inelastic).A company has 350 employees who work 120 hours a month each. Each worker earns $21 per hour. There is a profitable project the company would like to start, but it would require an additional 21,000 working hours within three months to be completed, and all the employees are fully loaded with other projects. The company does not want to hire new staff; they would like the project to be completed by the current workforce instead.Given that the wage elasticity of labor supply is 0.8, calculate the hourly wage the company should offer its employees to encourage them to work on the new project. Use the midpoint method and round to two decimal places throughout your calculations.A company has 700 employees who work 140 hours a month each. Each worker earns $37 per hour. There is a profitable project the company would like to start, but it would require an additional 42,000 working hours within three months to be completed, and all the employees are fully loaded with other projects. The company does not want to hire new staff; they would like the project to be completed by the current workforce instead. Given that the wage elasticity of labor supply is 0.65, calculate the hourly wage the company should offer its employees to encourage them to work on the new project.
- If labor supply of unskilled workers is perfectly elastic, then a) the labor supply curve of unskilled workers is horizontal at the market-clearing wage. b) the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. c) firms face an increasing marginal cost of hiring unskilled labor. d) workers will supply more hours of labor to the market when wages increase. c) firms face a horizontal value of marginal product of employment curve.a)The technical rate of substitution between factors X2 and X1 is 4. If you desire to produce the same amount of output but cut your use of X1 by 3 Units, how many more units of X2 unit will you need. b) Why will a monoponist undeemploy and underpay its workers compared to a perfectly competitive firm. c) Explain what happens to the marginal Factor cost of hiring a worker faced by the Monoponist when the elasticity of the supply Curve is infinitely large.Assume that tighter immigration laws cause a reduction in the supply of agriculturalworkers and this leads to higher wages in the sector. Dean’s Fruity Produce Ltd, afarm in Leicestershire, uses two inputs to harvest its output – machines (capital) andagricultural workers. Dean, the managing director of the company, has employedKarishma (a brilliant statistician) and she has estimated that the business’s long-runwage elasticity of labour demand is -1.7. Using isoquant/isocost analysis, explain the possible impact of the higher wages on the output level, total cost of production and input-factor mix of this business in boththe short and long-run and how would your answer change if Karishma had estimated that the long-run wageelasticity of labour demand was -0.4? (1000 words)
- Q38 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which labour is an input. What will the elasticity of factor demand be if unit wages rise by 5 percent and the number of employed workers falls by 9 percent? Multiple Choice 1.67. 0.56 1.80 2.36 3.009. Calculating the price elasticity of supply Dmitri is a university student who lives in Vancouver and teaches tennis lessons for extra cash. At a wage of $50 per hour, he is willing to teach 7 hours per week. At $65 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Dmitri's labour supply between the wages of $50 and $65 per hour is approximately , which means that Dmitri's supply of labour within this wage range isAssume a woman’s non-labor income elasticity is -0.2 and own wage elasticity is 0.4 and she originally works 30 hours per week. b. What is the effect of a wage increase from $35/hour to $40/hour on her weekly labor income? Go back to assuming her original hours worked (30 hours each week). Treat this part separately from part a.
- Q5 Those working for Amazon have been trying to form a union. Suppose that these workers are successful in forming a union and call themselves the Amazon Delivery Workers. Assume the union successfully negotiated a 14 percent wage increase and the result was that the quantity of labour demanded decreased by 10 percent. Given a fixed labour demand curve, we can conclude that Multiple Choice labour demand is inelastic. the coefficient of elasticity of labour demand is equal to 1. labour demand is elastic. the labour demand curve is upsloping. economies of scale has been achieved.Explain how the relationship between elasticity of demand for the product and labor would affect your major or specialization while you are studying at a higher education institution.Four (TYPE I) firms sell Product X in competitive markets at a price of 10. They each operate with the production function: x = 100L – L². Another firm with monopoly power (TYPE II) sells faces demand curve P = 160 – Y and has production function Y = 5L. All five firms hire as wage-takers in the same market where labour supply is w = 2L. Illustrate and quantify the equilibrium wage and the number of workers hired by each firm. а. Solve for the equilibrium wage and employment by each firm. b. Provide a 3-panel diagram. 6.