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- The demand for labor is L= 4000 - 300w, where L is the number of workers demanded and w is the hourly wage rate. The supply of labor is L = 200w. The equilibrium wage rate in this market is $ 8. and the equilibrium quantity of labor is 1600 workers. (Enter your responses as integers.) A minimum wage law is passed that sets the minimum wage at $9 per hour. As a result, 1300 workers are demanded and 1800 workers are supplied, so unemployment is 500 workers. (Enter your responses as integers.) Do all workers benefit from the minimum wage law? No. because not everyone can find work at the higher wage. Which group of workers will have the least dificulty finding work at the minimum wage? A. Young and inexperienced warkers. B. Low skilled workers. C. Highly educated workers. D. All of the above. The deadweight loss from the minimum wage law is (Enter your response as an integer.)Is there a better alternative to imposing a price ceiling?The following graph gives the labor market for laboratory aides in the imaginary country of Episteme. The equilibrium hourly wage is $10, and the equilibrium number of laboratory aides is 250. Suppose the federal government of Episteme has decided to institute an hourly payroll tax of $4 on laboratory aides and wants to determine whether the tax should be levied on the workers, the employers, or both (in such a way that half the tax is collected from each party). Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the quantity of labor demanded.…
- The government needs to raise revenue to subsidize the vegetable industry and wants to do so by taxing the fruit industry. Four fruit markets are summarized below. Fruit Markets Apple Banana Cherry Durian Demand P= 163-0.9Q P = 163-2.7Q P=163-3.1Q P = 163-2.7Q Supply P=6+0.8Q P=6+0.8Q P=6+4.2Q P=6+4.20 If the government imposes a $9.9 per fruit tax on one of these markets, what's the most it could earn? a. $211.06 b. $251.08 c. $856.64 d. $416.08The market demand for bicycle helmets is given by D(P) = 90−4P and the market supply ischaracterized by S(P) =P−10. In both expressions, P is the price per unit. The government introduces a per unit subsidy of S per helmet, that is paid out to the producer for each sale of helmets. (a) What is the equilibrium price and quantity before the government intervenes in the market? (b) What is the equilibrium price and quantity after the government intervenes in the marketimposing a per subsidy S >0? Hint: You have to find the equilibrium for all relevant levels of S. (c) Calculate changes in consumer surplus, producer surplus and welfare, as a function of subsidy S, due to the introduction of the subsidy. What welfare conclusion(s) do you draw? Illustrate graphically.JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to ensure that businesses could continue to employ workers. explores potential government initiatives following the conclusion of JobKeeper. Watch the video and answer the questions. The video proposes a HECS-style government loan to be offered to businesses following the conclusion of JobKeeper. Why might the government prefer to give a loan to businesses rather than a subsidy? Group of answer choices. 1Since firms have to pay it back eventually, the government ensures that businesses do not grow too quickly 2The government wants to minimise the effect of this initiative on its deficit, while still supporting businesses 3Giving a subsidy to businesses may cause a reduction in innovation and therefore a waste of taxpayers dollars 4 B and C are possible
- The market demand is given by P=250-2Q and the market supply by P=40+Q. What will be the shortage on the market, if a price ceiling of 77 is being implemented?Using the demand and supply graph given below, explain the impact of the ban in the market for cigarettes.Why was Rice Tarrification Law became a law in the Philippines?
- The demand for a commodity is given by QD=200-P, and the supply by QS=50+P. What is the equilibrium price and quantity? If a tax of $10 per unit is imposed, what will be the price and quantity after the tax?Suppose the market for steel is expressed as follows: Domestic demand: p = 40 - 0.2q, or q = 200 - 5p Domestic supply: p = 0.2q, or q = 5p Domestic supply (foreign): p = 0.1q, or q = 10p a) What is the equilibrium price and quantity if there is free trade, with no restriction on imports? b) What is the equilibrium price and quantity if the government imposes a binding import quota of 20 units? Depict parts a and b on a single graph. c) How are US steel firms affected by the quota? US automakers? Explain briefly.In the market for candy, researchers have estimated the following demand and supply curves. Demand: P= 8 - Q/100 Supply: P= (3Q)/700 If the government imposes an excise tax of $0.50 per unit. What is the tax incidence on producers? (If you find that the incidence is $0.50 on producers enter your answer as 0.5).
