The diagram on the right shows a perfectly competitive labour market. The initial equilibrium is with wage w* and employment L*. a. Suppose the demand for labour decreases to D'L. If wages are perfectly flexible, what is the effect on the wages and employment? If wages are perfectly flexible, wages will decrease decrease and employment will Use the point drawing tool to plot the new equilibrium point. Carefully follow the instructions above, and only draw the required object. Real Wage Part a Employment D'L

The diagram on the right shows a perfectly competitive labour market. The initial equilibrium is with wage w* and employment L*. a. Suppose the demand for labour decreases to D'L. If wages are perfectly flexible, what is the effect on the wages and employment? If wages are perfectly flexible, wages will decrease decrease and employment will Use the point drawing tool to plot the new equilibrium point. Carefully follow the instructions above, and only draw the required object. Real Wage Part a Employment D'L

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 35CTQ: While unemployment is highly negatively correlated with the level of economic activity, in the real...

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A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
Please only awnser this question I must give uou the previous question below it for context Please awnser this one: In the same model of the labour market as in the previous question,Select one or more:a. A rise in labour supply will lead to a rise in wagesb. Given a constant mark-up a rise in labour productivity will lead to higher wagesc. A rise in product market competition will lead to a higher mark-upd. Equilibrium employment is given by the intersection of the wage and profit curves This one is just for context so you can awnser the question: Given labour market equilibrium with identical workers, as set out in CORESelect one or more:a. Unemployment is always voluntaryb. Workers who are involuntarily unemployed cannot gain a job at any wagec. A Nash equilibrium existsd. Measured unemployment will be zero
Please answer the c and d. Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 - 0.5W Supply: LS = 0.5W a. Find the equilibrium wage and employment levels. b. Graph the curves and indicate the equilibrium on a graph. c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market? d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.
Complete the following labor supply table for a firm hiring labor competitively: Total Labor Cost Marginal Resource (Labor) Cost Marginal Revenue Product Units of Labor Wage Rate $14 14 $38 2 14 28 3 14 24 4 14 20 5 14 14 6 14 10 a. Show graphically this firm's labor supply and marginal resource (labor) cost curves. Instructions: (1) Use the tool provided 'MRC' to draw the marginal resource cost curve (plot 6 polnts total). (2) Use the tool provided 'MRP' to draw the marginal revenue product curve (plot 6 polnts total). To earn full credit for this graph, you must plot all required polnts for each curve. Тools MRC MRP 1. 3 4 5 6 7 Quantity of labor Wage rate (dollars)
Please answer the first 3 questions. Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 - 0.5W Supply: LS = 0.5W a. Find the equilibrium wage and employment levels. b. Graph the curves and indicate the equilibrium on a graph. c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market? d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.
In each of the following cases, classify the person as cyclically unemployed, structurally unemployed, frictionally unemployed or not in the labour force. Firm 1 buys out Firm 2 and lays off Firm's 1 administrative staff. As production processes become more sophisticated, people who leave school without CXC subjects are unable to find employment. Worker 3 won the lottery and quit her job. She is not seeking a new job. Choose... Choose... Choose... (▶ Choose... Not in the Labour Force Frictional unemployment Structural unemployment Cyclical unemployment
If you observed the equilibrium wage rate increasing while equilibrium employment increased, which of the following would be a possible explanation? There was: O a decrease in labor demand an increase in labor supply O a decrease in labor supply an increase in labor demand * Previous Next ASUS
Question 2 Using a diagram like Figure 9.8 below: soprolit curves Wage Demand curve (given economy wide demand) Units of output, q (and hours of labour, n) explain in your own words why prices would fall and employment would increase if the economy were at point C in Figure 9.10 below: Labour supply explain in your owrn WOlus W increase if the economy were at point C in Figure 9.10 below: Labour supply At A real wage too high and markup too low, firms raise price; and given demand, output falls Average product of labour, A W/P-w Price-setting curve C. At C real wage too low and markup too high: firms lower price; and given demand, output rises Employment, N (whole economy) Average product of labour, A; Real wage, W/P Price, p (5)
hy does a measure of labor productivity—the output produced per worker– rise for many firms during recessions? During the boom years period of 2005through November 2007, the annual average output per worker was lower in U.S.manufacturing than during the Great Recession of 2007–2009 as well during therelatively low-demand years since then through 2013.Firms produce less output during recessions as demand for their products falls.Consequently, firms typically lay off workers during recessions. Thus, whetheroutput per worker rises or falls depends on whether output or employment fallsby more. The labor productivity pattern over the business cycle differs across in-dustries. If we know about a firm’s production process, can we predict whetheroutput produced per worker will rise or fall with each additional layoff?
Some Firms Struggle to Hire Despite High Unemployment Matching people with available jobs is always diffi- cult after a recession as the economy remakes itself. But Labor Department data suggest the disconnect is particularly acute this time. Since the recovery began in mid-2009, the number of job openings has risen more than twice as fast as actual hires. If the job mar- ket were working normally, openings would be get- ting filled as they appear. Some five million more would be employed and the unemployment rate would be 6.8%, instead of 9.5%. Source: The Wall Street Journal, August 9, 2010 9. If the labor market is working properly, why would there be any unemployment at all?
What happens in the labor market when the following event occurs? Suppose that the number of jobs in the fishing industry decreases but the number of Jobs in the travel industry increases. Initially, O A. there is a shortage of workers in both sectors B. the unemployment rate does not change O C. cyclical unemployment increases O D. structural unemployment increases
Real wage Cabor supply Labor (hours) Preferences Time preference: 100 O A flattening of the labor supply curve due to a higher labor supply elasticity OA steepening of the labor supply curve due to a lower labor supply elasticity Smoothing: 100 Will to substitute: 105 Consumption weight: 10 Prices and assets Initial assets: 100 Wage rate: 100 Interest rate: 100 Price level: 100 Inflation rate: 100 The following question will be about the labor supply curve. Remember, the labor supply curve plots hours worked on the x-axis and the real wage on the y-axis. Which of the following would happen as a result of an increase in households' willingness to substitute between consumption and leisure? O An upward movement along the curve and an increase in the log of hours worked O A downward movement along the curve and a decrease in the amount of hours worked O None of these