Firms labor demand and labor supply equations

Assignment Help Business Economics

Reference no: EM131006030

A firm’s labor demand and labor supply equations are shown below.

Labor demand equation: Ld = 40 – 2(w)

Labor supply equation: Ls = −20 + 3(w),

where w is the wage per hour worked.

Instructions: Round your answers to the nearest whole number.

a. The equilibrium wage is $? and the equilibrium quantity of labor employed is ? people.

b. The workers, thinking that their wages are too low, decide to strike. After tense negotiations, the firm decides to raise the wage by 50 percent.

After the wage increase? people are unemployed

Reference no: EM131006030

Questions Cloud

Represent an obvious example of ceo overpayment : A CEO's pay rose 25% over the 2001-2002 period even though his firm's ROA fell 12% and the stock return fell 10% over the same period. Discuss why this may NOT represent an obvious example of CEO overpayment (try to provide at least two strong reason..

Implementing software project management strategies : Assignment: Implementing Software Project Management Strategies, Imagine that you are employed by an organization that would like to further invest in the development of internal software applications

Where are how are general capital assets reported : Name the type of fund and/or activity in which each of the following should be recorded. (If any of the following should not be recorded at all, enter "none" on the appropriate line.)

How does a leveraged lease differ from a non leveraged lease : How does a leveraged lease differ from a non leveraged lease?

Firms labor demand and labor supply equations : A firm’s labor demand and labor supply equations are shown below. The equilibrium wage is $? and the equilibrium quantity of labor employed is ? people.

What is the period of the periodic motion : What is the period T of the periodic motion? What m the frequency f in Hertz? What the angular frequency ω in radians / second? Determine the amplitude A and the phase angle γ (in radians), and express the displacement in the from y (t) = A cos (ωt ..

What does the term partial pressure mean : What does the term partial pressure mean - Write an expression for the equilibrium constant KP for this in terms of partial pressures

What may have led to the breakdown of internal controls : Explain what may have led to the breakdown of internal controls and how long this internal control weakness may have existed.

Could a finance lease under ifrs : Could a finance (capital) lease under IFRS be classified as an operating lease under U.S. GAAP? Explain.

User Account

All Pages