Number of jobs increase or decrease

Assignment Help Business Economics

Reference no: EM139140

Q. Assume labor supply is given by w=10+2Ls, where w denotes the wage. Labor demand is given by w= 100-Ld.

(a) Compute equilibrium labor quantity and the corresponding wage

(b) Now assume the city imposes an environmental tax of $10 per unit of labor firms. Which results companies will now lower their willingness to pay for labor by $10 every employee. The city uses the money to beautify the local parks that magnetize many employees to city. Economic consultant firm finds out the labor supply curve will shift because workers will be happy with a wage which is $16 lower than before the improvement. Compute the new equilibrium wage and the new number of jobs. Compared to (a), will the number of jobs increase or decrease?

Reference no: EM139140

Questions Cloud

Describe some forms of private spending : Describe some forms of private spending which represent consumption some forms which represent investment.

Marginal revenue from selling another book : Illustrate what is the marginal revenue from selling another book for the author. Explain how does it compare to the marginal revenue

Analyze the characteristics which make any transaction : Analyze the characteristics which make any transaction possible and justify the importance of each of the characteristics.

Commonly expect for the future : Assume the current rent is also equal Illustrate one would commonly expect for the future.

Number of jobs increase or decrease : Compute the new equilibrium wage and the new number of jobs. Will the number of jobs increase or decrease.

Evolution of cokes strategy : Illustrate what does the evolution of Coke's strategy tell you about the convergence of consumer tastes and preferences.

Post-merger bargaining outcome : Assume the two newspapers merge. Illustrate what is the likely post-merger bargaining outcome.

Demand schedule for belgium cocoa : Illustrate what is the demand schedule for Belgium cocoa beans now which U.S. consumers can also buy them.

2 products in an economy : Explain how do I draw a production possibilities curve for 2 products in an economy if a natural disaster affects one but not the other.

User Account

All Pages