Let's take another look at the minimum wage. A. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. B. Is the minimum wage similar to any of the models in chp 17? If so which one? C. Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Is there a different result for equilibrium price and wage you outlined in #1, If so, what would that be ?

Let's take another look at the minimum wage. A. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. B. Is the minimum wage similar to any of the models in chp 17? If so which one? C. Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Is there a different result for equilibrium price and wage you outlined in #1, If so, what would that be ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose demand for labor is given by the equation Pp = 25 - 2Qp and supply for labor is given by the equation Ps = 5 + 2Qs. Price is the hourly wage rate in dollars and quantity measures the number of workers. Imposing a minimum wage of $17 by government will O create a labor surplus of 2 and firms will hire 5 workers. O create unemployment of 0 and firms will hire 4 workers. create a labor shortage of 0 and firms will hire 5 workers. O create unemployment of 2 and firms will hire 4 workers. 42. ans 20 MacBook Air 30 F3 esc F1 F2 F4 F5 $ % 4 6. Q W E R Y tab A S D F G ps lock # 3
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Consider the Labor Market in New York and New Jersey. In both markets Demand is given by w = 1000-2E. Assume New York has a perfectly inelastic supply of 400 workers and New Jersey has perfectly inelastic supply of 200 workers. a. Graph the two markets and find the equilibrium wage in each market. b. With costless mobility across markets what would the long-run wage in each market. Show this in your graphs. c. Instead, assume that there are still 400 workers in New York and 200 in New Jersey but now the cost of moving is $ 100. What will be the long-run wage in each market? Explain
↓ The graph illustrates a labor market in which there is a minimum wage of $5 an hour Draw shapes that represent the following 1) firms' surplus Label it FS 2) workers' surplus. Label it WS 3) deadweight loss. Label it DWL 4) the potential loss from job search Label it Loss >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape Wage rate (dollars per hour) FS 3- 0+ 18 19 (18,2) Minimum wage D 24 25 21 22 23 20 Quantity (millions of hours per year) a G
Figure 4-17 Price $8.00 7.00 6.00 5.00 4.00 30 40 50 60 70 Refer to Figure 4-17 4-17.png. If this figure represented a labor market where the equilibrium price for labor was $6 an hour and the government decided to implement a minimum wage of $8 an hour, which of the following are true? 30 people would be better off because they get to keep their jobs at the new $8 an hour minimum wage. O 20 people would be made actively worse off because they would have voluntarily worked for $6 an hour, but are now unemployed and have no job at all. there is a surplus of labor equal to 40 workers that represents an increase in unemployment. O All of the answer choices are correct
What impact does the minimum wage have on the economy?
Minimum Wages and Unions Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibrium wage W* is determined, and briefly explain all the concepts in the diagram. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in the diagram and explain whether the labour market outcomes in part a. change, and how. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in the diagram and explain what the labour market outcomes will be. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above both W* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to the previous part.
How would imposing a minimum wage below the market-clearing wage affect employment in a competitive labor market? Group of answer choices a. Employment would be unchanged because the market forces drive the wage to a higher level. b. Employment would decrease as some workers who are willing to work at the lower competitive wage would no longer be able to find work. there would be a shortage of labor c. Employment would increase because setting a minimum wage below the market wage would increase the quantity of labor demanded d. Employment would decrease because the quantity of labor supplied would decrease
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! Please answer questions 6 and 7.
Let's take another look at the minimum wage. Is the minimum wage a price ceiling or price floor? Show this on a graph. Point out or describe any inefficiencies with regard to price and quantity. Is the minimum wage similar to any of the models in chp 17? If so which one? Is there a different result for minimum wage, which you outlined in #1, if monopsony or monopsonistic power is injected into the analysis? What might that be? Show this on your graph. Is there a different result for equilibrium price and wage you outlined in #1. If so, what would that be ?