Calculate the wage rate in the market

Assignment Help Business Economics
Reference no: EM132492178

Assume that you are studying a perfectly competitive labour market. The demand for labour is given by W = 200 - L The supply for labour is given by W = 100 + L

a) Calculate the wage rate in the market and illustrate in a diagram.

b) If the wages becomes W = 175, what will happen in the market? Explain how the equilibrium will be reached and illustrate in a diagram.

c) If the wages becomes W = 125, what will happen in the market? Explain how the equilibrium will be reached and illustrate in a diagram.

d) If the government puts a minimum wage of W = 190, what will happen in the market?

Reference no: EM132492178

Questions Cloud

Derive the condition for the optimal rotation : Derive the condition for the optimal rotation when a forest also provides species habitat services
Why do investors find the price ratio to be a valuable : Determine Why do investors find the price ratio to be a valuable and easily computed process in their companies investment? Explain
What effects will this have on the loanable funds graph : If there is an inflationary gap in the AD/AS graph and personal income taxes are increased as a response, what effects will this have on the loanable funds grap
Equilibrium number of units of labour employed : Calculate the equilibrium number of units of labour employed in short run.
Calculate the wage rate in the market : Assume that you are studying a perfectly competitive labour market. The demand for labour is given by W = 200 - L The supply for labour is given by W = 100 + L
Develop a training plan : Develop a training plan for each of the following HIM functional areas: . Record analysis . Documentation improvement . Release of information
Elasticity of demand between two price : You have determined that the elasticity of demand between two price points is approximately 1.3 for the market you are working in.
Distinguish bentham theory vs mill theory : Distinguish one major difference between Bentham's theory and Mill's theory? Why does Mill think it is necessary to modify Bentham's theory?
What are the consequences for non-compliance : In 500 words or more, explain PCI compliance to the database administrator at a large retailer. Consider the consequences for non-compliance.

Reviews

Write a Review

Business Economics Questions & Answers

  Slowdown in federal spending

Now that the tax reform bill is being implemented and there doesn't seem to be a slowdown in federal spending, how can we respond to the increasing federal debt

  What is an overhsoot

Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.What is an overhsoot? Explain the exact form of this official intervention to counteract a specific overshoot. ..

  What is the equation for the market supply curve

The market marginal benefit for milk (in gallons) is given by MB = 132 - 8/3925 Q. There are two firms in the market that produce milk. The first firm’s marginal cost curve is given by MC1 = .0003125Q, while the second firm’s marginal cost curve is M..

  What is the monthly payment

What is the monthly payment? What is owed after the first 2 years of payments?

  Assume the demand for plastic surgery is price inelastic

Assume the demand for plastic surgery is price inelastic. Are the following statements true of false? Explain. When the price of plastic surgery increases, the number of operations decreases.The percentage change in the price of plastic surgery is le..

  Find out his utility maximizing h and l

Find out his utility maximizing H and L. Assume he is not eligible for welfare. Now assume he is eligible for welfare. Does he take welfare or work.

  Manager of a local hotel chain

"As manager of a local hotel chain, you have hired an econometrician to estimate the demand for one of your hotels (H). The estimation has resulted in the following demand function"

  Measure the speed of automobile on an expressway

A radar unit is used to cduring rush-hour traffic. The speeds of individual automobiles are normally distributed with a standard deviation of 4 mph.

  Why has sharp been so successful for so long

Why has Sharp been so successful for so long. Is Sharp today an end products or a components company. How is Sharp able to coordinate and integrate activities across corporation.

  Discuss five business-economics activities

Discuss five business/economics activities and its rationality that they are not included in the computation of the annual Gross Domestic Products

  What impact does manufacturing have on local water supplies

Why have poorer countries become offshore manufacturing centers? What impact does this manufacturing have on local water supplies? What implications does this have, especially in locations where clean water is already in short supply? Is water a comm..

  Profit-maximizing pricing strategies

Refer to the Porter and Thomas paper. According to Porter and Thomas, what are sports teams doing to cause persistent shortages? How can these shortages be rational, profit-maximizing pricing strategies? You will need around 100 words to thoroughly a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd