Describe the industry equilibrium price output

Reference no: EM1338119

Sample Question: Demand and Supply

A) Demand and supply conditions in the perfectly competitive market for unskilled labor are as follows:
QD = 120 - 12P (Demand)
QS = 8P (Supply)
where Q is millions of hours of unskilled labor and P is the wage rate per hour.

1. Graph the industry demand and supply curves.

2. Determine the industry equilibrium price/output combination both graphically and algebraically.

3. Calculate the level of excess supply (unemployment) if the minimum wage is set at $7 per hour.

B) The tax burden falls mainly on consumers when demand is relatively elastic and it falls mainly on producers when demand is inelastic. True or false? Explain and give examples.

Reference no: EM1338119

Questions Cloud

Explain what advice would you give an entrepreneur : Explain what advice would you give an entrepreneur who was trying to finance a start-up

Proper length of time for a project : What do you feel is the proper length of time for a project?

Elucidate why monopolistically competitive firms frequently : Elucidate why monopolistically competitive firms frequently prefer non-price competition to price competition.

Explain social responsibilities in uav implementation : Explain Social responsibilities in UAV implementation and Describe the social responsibilities that the NYPD may have in implementing UAVs

Describe the industry equilibrium price output : Describe the industry equilibrium price/output combination both graphically and algebraically. Calculate the level of excess supply (unemployment) if the minimum wage is set at $7 per hour.

What rationale can you give for holding cash : What rationale can you give for holding cash, especially when it id considered that no interest is earned?

Activities required to successfully manage project : From a project management perspective outline the activities required to successfully manage this project, ensuring that it is on time, and within budget.

Examine whether the raise would have a huge impact : Examine whether the raise would have a huge impact on hours worked. you have the resultsof studies conducted for three other companies.

Explain business threats : Explain Business Threats and Human Error and Natural Accidents

User Account

All Pages