orAssume the labor market for fuel-efficient vehicle technologies in the United States is illustrated inthe figure to the right.If the United Auto Workers (UAW) union organizes these workers and negotiates a wage of$25.00 an hour, what will be the resulting deadweight loss, if any, from the union-negotiated wagecompared to the competitive equilibrium?1.) Using the triangle drawing tool, shade in surplus for the employers (the consumers of labor)from the union-negotiated wages (CS) in the figure to the right.2.) Using the triangle (PSTriangle) and rectangle (PS Rectangle) drawing tools each once, shade insurplus for the workers (the suppliers of labor).3.) Using the triangle drawing tool, shade in deadweight loss (DWL) from the union-mandatedwage.Carefully follow the instructions above, and only draw the required objects.GWage (dollars per hour)35.00-32.50-30.00-27.50-25.00-22.50-20.00-17.50-15.00-12.50-10.00-7.50-5.00-2.50-0.00+O50Union100 150 200Quantity (workers in 1000s)SupplyDemand250300Next

The objective of this question is to understand the impact of a union-negotiated wage on the labor…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this? (d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers. (e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 2 0 0 1 Supply Demand 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is $ Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Thousands of workers) 6 900 and the equilibrium quantity of labor is Labor Supplied (Thousands of workers) ? 378 thousand workers.
14. Minimum wage legislation The following graph shows the labour market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Labour in the Fast-Food Industry 20 18 I Wage (Dollars per hour) Supply 16 Labour Demanded (Thousands of workers) Labour Supplied (Thousands of workers) 174 126 14 12 10 bepand 4. 90 120 150 180 210 240 270 300 LABOUR (Thousands of workers) 30 60 In this market, the equilibrium hourly wage is and the equilibrium quantity of labour is workers. WAGE(Dollars per hour)
In a competitive labor market, employers will not pay less than the market wage because at a wage below the equilibrium A) the equilibrium wage would rise B) they would not be able to hire anyone C) there would be a surplus of workers D) they would be inundated with excess workers
9. Minimum wage legislation The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool ?) 20 Market for Labor in the Fast Food Industry 18 I Wage (Dollars per hour) 16 Labor Supplied (Thousands of workers) Supply Labor Demanded 900 14 (Thousands of workers) 12 10 8 Demand 4. 0. 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers) WAGE (Dollars per hour)
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. In a labor market, workers supply their labor to the market in exchange for wages, and their behavior is represented by the supply curve. Similarly, firms pay wages to obtain labor, and thus their behavior is represented by the demand curve. In this way, wages are the price of labor. (a). Suppose a senator introduces a bill to legislate a minimum hourly wage of $8. This type of price control is called a ________ (options: price ceiling, quota, tax, price floor). (b). For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted (upward or downward) on wages in the absence of any price controls. Wage (dollars per hour) Labor demanded (thousands of workers) Labor supplied (thousands of workers) Surplus or shortage of labor Pressure on wages (downward or upward) 14…
Demand for Resources A small manufacturing company has the following daily relationship between labor and output: Units of Total Labor Product 1 2 21 3 35 52 61 65 61 7 If the firm sells into a perfectly competitive market and the equilibrium price is $3.25 per unit, compute the following: Marginal Units of Marginal Product Revenue Labor Product 1 2 3 5 7 How many workers will the firm hire is the market wage rate (includining benefits) is $30.00? Wł 3 How many workers will the firm hire is the market wage rate(includining benefits) is $20.00? 4 If the equilibrium price per unit of output dencreases, what would you expect to happen to the number of workers hired? If the firm sells in a imperfectly competitive market such that price per unit starts at $4.50 per ur declines by $0.10 per unit as more as sold, what do you think would happen to the number of labor units hired at $30.00 per unit? 5 2.
3) The following data table contains the labor demand and labor supply schedules for low-skilled workers in San Francisco. Use the data to answer the questions below. Qd-labor demand W-wage $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 Qs-labor supply 210,000 200,000 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 a) Find the equilibrium wage and quantity of workers for low-skilled workers in San Francisco. Show equilibrium graphically and include the wage intercepts.
Graph Input Tool (? Market for Labor in the Fast Food Industry 20 I Wage (Dollars per hour) 18 6. 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) Supply 232 14 12 10 Demand 4 40 80 120 160 200 240 280 320 360 400 LABOR (Thousands of workers) WAGE (Dollars per hour)
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 10 2 0 Supply Demand 0 50 100 150 200 250 300 350 400 450 500 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 500 Labor Supplied (Hundreds of workers) ? 0
) Suppose an economist states that under a free labor market he expects wages for 4. 1. athletes would be relatively low at Stanford, despite the fact their football program generates a lot of revenue each year, and would have the ability to pay the higher wages for higher quality athletes. What could potentially affect the supply curve for labor for Stanford that wouldn't affect other PAC- 12 schools? Depict the differences in the labor market Stanford faces compared to those other PAC- 12 schools. (HINT: Think of a similar effect for Ivy League schools if they generated enough revenue.) A related question is, why might a higher quality player be willing to take lower wages at Stanford, instead of say Oregon? (Think about costs and benefits of the athletes.)
Suppose a union successfully negotiates an increase in the wages of workers producing computer chips. This would lead to ___ in the supply of computers, causing the price of computers to ___ . Because computers and computer software are ___ , this change in price would cause the demand for computer software to ___ . However, computers and typewriters are ____ , so the change in the price of computers would _____ the demand for typewriters

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