This is the estimated labour demand equations based on hypothetical annual data on employment and hourly wages in Azarath: log(employment)=2.4-0.9log(wages) The p-values are 0.001, and 0.029 This is the estimated labour demand equations based on hypothetical annual data on employment and hourly wages in Wakanda: log(employment)=2.5-0.4log(wages) The p-values are 0.012 and 0.020 Question: a.) Using these estimated equations, how would increasing the minimum wage in Azarath and Wakanda affect employment differently. Please explain in as much depth as possible. b.) Are there any issues with the aforementioned estimated equations? What methods would you use to rectify these issues?

This is the estimated labour demand equations based on hypothetical annual data on employment and hourly wages in Azarath: log(employment)=2.4-0.9log(wages) The p-values are 0.001, and 0.029 This is the estimated labour demand equations based on hypothetical annual data on employment and hourly wages in Wakanda: log(employment)=2.5-0.4log(wages) The p-values are 0.012 and 0.020 Question: a.) Using these estimated equations, how would increasing the minimum wage in Azarath and Wakanda affect employment differently. Please explain in as much depth as possible. b.) Are there any issues with the aforementioned estimated equations? What methods would you use to rectify these issues?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 9E

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