Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 4, Problem 1SCQ
In the labor market, what causes a movement along the
Expert Solution & Answer
To determine
The reasons why there is a movement along the demand curve and shifts in the demand curve in the labor market.
Explanation of Solution
In the labor market, when there are changes in the wage rate, there is a movement along the demand curve. When the wage rate is high, the demand for labor is low and when the wage rate is low, the demand for labor is high.
This is due to the fact that, when the wage rate is high, the firms will need to pay higher wages to all the labor so the demand for labor will be low.
If there are changes to other factors other than price, such as change in the output, change in the production process, technology, then this will lead to a shift in the demand curve.
When there is an increase in the technology of production, despite being no change in the wage rate, it will lead to a decrease in demand and this is shown by a backward shift in the demand curve for labor. Similarly, when there is a sudden need to increase output, at the prevailing wage rate, they might want to use more labor, which leads to a rightward shift in the demand for labor.
Economics Concept Introduction
Concept introduction:
Law of demand- There is an inverse relationship between the price (wage rate) and the quantity demanded (demand for labor). When wage rate rises, demand for labor falls and vice versa.
Changes in demand- When there is a change in the variable such as price (here, wage rate) we see that there is a movement along the demand curve. When there is an increase in the wage rate, there is decrease in the demand for labor and vice-versa.
When there are changes other than the wage rate (such as changes in output, production process), we see that there is a shift in the demand curve. Rightward showing an increase in demand and backward showing a decrease in demand
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Respond to B.A.
I have chosen Gross Domestic Product (GDP) as the macroeconomic indicator to review and provide a forecast prediction. Based on the current trend I predict a 2% annual GDP growth rate, indicating an unstable economy due to the impact of Donald Trump's tariffs on some countries and other other economic factors. This growth rate is lower than the historical average , indicating a slowdown in economic expansion. Overall, the forecast suggests a modest growth in GDP, but with potential risks and uncertainties ahead. But if he reverse his tariff policies, I think it could possibly result in a strong economic growth. As the removal of tariffs would likely minimize the costs for businesses and consumers and also rise trade and economic activities.
Provide feedback/comments this post. You could agreement or disagreement (including why you agree or disagree). Or you could expand on this post by sharing different views and predictions.
Can you show me how to solve this.
ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I =
ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023)
1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.
Chapter 4 Solutions
Principles of Macroeconomics 2e
Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - Why is a living wage considered a price floor?...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - If a usury law limits interest rates to no more...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Identify the most accurate statement. A price...Ch. 4 - A price ceiling will have the largest effect:...
Ch. 4 - Select the correct answer. A price floor will...Ch. 4 - Select the correct answer. A price ceiling will...Ch. 4 - What is die price commonly called in the labor...Ch. 4 - Are households demanders or suppliers in the goods...Ch. 4 - Name some factors that can cause a shift in the...Ch. 4 - Name some factors that can cause- a shift in the...Ch. 4 - How do economists define equilibrium in financial...Ch. 4 - What would be a sign of a shortage in financial...Ch. 4 - Would usury laws help or hinder resolution of a...Ch. 4 - Whether the product market or the labor market,...Ch. 4 - Other than the demand for labor, what would be...Ch. 4 - Suppose that a 5 increase in the minimum wag...Ch. 4 - Under what Circumstances would a minimum wage be a...Ch. 4 - Suppose the U.S. economy began to grow more...Ch. 4 - If the government imposed a federal interest rate...Ch. 4 - Why are the factors that shift the demand for a...Ch. 4 - During a discussion several year; ago on building...Ch. 4 - Identify each of the following as involving either...Ch. 4 - Predict how each of the following events will...Ch. 4 - Predict how each of the following economic changes...Ch. 4 - Table 4.6 shows the amount of savings and...Ch. 4 - Imagine that to preserve the traditional way of...Ch. 4 - What happens to the price and the quantity bought...
Additional Business Textbook Solutions
Find more solutions based on key concepts
E2-13 Identifying increases and decreases in accounts and normal balances
Learning Objective 2
Insert the mis...
Horngren's Accounting (12th Edition)
Why is the capital-budgeting process so important?
Foundations Of Finance
Define cost object and give three examples.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
1.10 Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can pro...
Operations Management
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (12th Edition) (What's New in Accounting)
S6-2 Determining inventory costing methods
Ward Hard ware does not expect costs to change dramatically and want...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Knowledge Booster
Similar questions
- What bill are they currently sponsoring? Please provide the answer to the question using www.akleg.gov for Senate Bill 30?arrow_forwardDo they have any specified areas of interest( examples: oil/gas, education, subsistence). Please provide the answer to the question using www.akleg.gov for Senate Bill 30?arrow_forwardA brief synopsis of whether you believe they represent your interest, why or why not? Please provide the answer to this question by using www.akleg for senate bill 30 ?arrow_forward
- What is their background (degree, career/job, community of origin, anything else you choose to include) Please provide the answers using www.akleg.gov for Senate Bill 30?arrow_forwardPlease provide the answer to these questions using informatioin from www.akleg.gov for Senate bill 30. What is their party affiliation?arrow_forwardPlease provide the answer to the question using information from www.akleg.gov for Senate Bill 30. How lonng have they been in public office?arrow_forward
- Please provide the answer to the following questions using www.akleg.gov website for Senate Bill 30. What District do they represent?arrow_forwardPlease provide the answer to this question using www.akleg.gov for Senate Bill 30? Do they hold any committe seats?arrow_forwardWhat impact does the North American Free Trade Agreement have on relations between countries in North America? NAFTA regulates and enforces protections for workers to ensure that they have safe working environments and fair wages. NAFTA eliminates tariffs and trade restrictions, facilitating export and import between countries in North America. NAFTA sets up regulations limiting industrial pollution in all three countries, ensuring the costs of manufacturing are similar in each country. NAFTA eliminates trade restrictions on products from embargoed countries.arrow_forward
- Which of the following is included in the GDP_________? Group of answer choices The two answers describe components of the GDP. The federal government expenditure on welfare payments. Households goods and services produced at home. Neither of the two answers describe components of the GDP.arrow_forwardWhat are two examples of where historical cost is used within the financial statements. State both the account name and the amount for each account selected. What was the amount of revenue that Airbnb reported for 2024? Did the revenue grow over the prior year of 2023? What was the dollar and the percentage increase or decrease?arrow_forwardWhat was the amount of revenue that Airbnb reported for 2024? Did the revenue grow over the prior year of 2023? What was the dollar and the percentage increase or decrease? What was the amount of net income or net loss that Airbnb reported for the year of 2024? Did the net income increase or decrease versus the prior year of 2023? What was the dollar and the percentage increase or decrease?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning