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
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 8E: Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X...
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This is the estimated labour
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?
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