Exercise 2. Suppose that Government is currently evaluating a project, which is going to hire native language teachers and requires in total 5000 hours of teaching. Let's denote the hour taught by native language teacher by letter L. Thus, the project's demand for teaching hours by native language teachers is described by the demand function La project = 5000. Suppose that the following is known about the current (pre-project) market for native language teachers: - there is no involuntary unemployment among the native language teachers - the Government does not apply any taxes or subsidies in this particular labour market; - the current (pre-project) demand for teaching hours by native language teachers is described by the demand function La 30000 300Wa, where La denotes the quantity of teaching hours (by native language teachers) demanded and Wa denotes the demander price per teaching hour; - the current (pre-project) supply of teaching hours by native language teachers is given by the supply function L. = 200w., where Ls refers to the quantity of teaching hours supplied by native language speakers and W. denotes the supplier price per teaching hour; Suppose that there are no changes expected in the pre-project demand or supply functions during the start to the end of the project, i.e. the relationship between the price and the quantity demanded by others as well as the relationship between the price and the quantity supplied, remain described by the same functions as outlined earlier. a) Find the financial cost of the teaching hours demanded by the project?
Exercise 2. Suppose that Government is currently evaluating a project, which is going to hire native language teachers and requires in total 5000 hours of teaching. Let's denote the hour taught by native language teacher by letter L. Thus, the project's demand for teaching hours by native language teachers is described by the demand function La project = 5000. Suppose that the following is known about the current (pre-project) market for native language teachers: - there is no involuntary unemployment among the native language teachers - the Government does not apply any taxes or subsidies in this particular labour market; - the current (pre-project) demand for teaching hours by native language teachers is described by the demand function La 30000 300Wa, where La denotes the quantity of teaching hours (by native language teachers) demanded and Wa denotes the demander price per teaching hour; - the current (pre-project) supply of teaching hours by native language teachers is given by the supply function L. = 200w., where Ls refers to the quantity of teaching hours supplied by native language speakers and W. denotes the supplier price per teaching hour; Suppose that there are no changes expected in the pre-project demand or supply functions during the start to the end of the project, i.e. the relationship between the price and the quantity demanded by others as well as the relationship between the price and the quantity supplied, remain described by the same functions as outlined earlier. a) Find the financial cost of the teaching hours demanded by the project?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Exercise 2. Suppose that Government is currently evaluating a project, which is going to hire native
language teachers and requires in total 5000 hours of teaching. Let's denote the hour taught by native
language teacher by letter L. Thus, the project's demand for teaching hours by native language teachers is
described by the demand function La project = 5000. Suppose that the following is known about the current
(pre-project) market for native language teachers:
- there is no involuntary unemployment among the native language teachers
- the Government does not apply any taxes or subsidies in this particular labour market;
- the current (pre-project) demand for teaching hours by native language teachers is described by the demand
function La = 30000 – 300Wa, where La denotes the quantity of teaching hours (by native language
teachers) demanded and Wa denotes the demander price per teaching hour;
- the current (pre-project) supply of teaching hours by native language teachers is given by the supply
function L. = 200w., where Ls refers to the quantity of teaching hours supplied by native language speakers
and W. denotes the supplier price per teaching hour;
Suppose that there are no changes expected in the pre-project demand or supply functions during the start to
the end of the project, i.e. the relationship between the price and the quantity demanded by others as well as
the relationship between the price and the quantity supplied, remain described by the same functions as
outlined earlier.
a) Find the financial cost of the teaching hours demanded by the project?
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