What is equilibrium wage and employment level

Assignment Help Business Economics

Reference no: EM13886686

In a particular industry, labor supply is Es = 10 + w and labor demand is Ed = 40 – 4w, where E is the level of employment and w is the hourly wage.

a. What is the equilibrium wage and the employment level if the labor market is competitive? What is the unemployment rate?

b. Suppose the government sets a minimum hourly wage of $8. How many workers would you expect to lose their jobs? What is the unemployment rate?

Reference no: EM13886686

Questions Cloud

What are equilibrium price and quantity-consumer surplus : Assume the nation of Australia is "small" and thus unable to influence world price. Its demand and supply schedules for TV sets are shown in Table 4.13.Using graph paper, plot the demand and supply schedules on the same graph. What are the equilibriu..

Review the campbell and stanley text : To prepare for this Application: Review the Campbell and Stanley text, Experimental and Quasi-Experimental Designs for Research. Review the Final Project Description handout provided in this week's Learning Resources

What is the firms optimal capital-labor ratio : Suppose a firm’s production function is: f(E,K) = 40K0.25E0.75 The corresponding marginal product functions are: MPK = 10K-0.75E0.75 and MPE = 30K0.25E-0.25 Suppose initially that the hourly wage is $9 and the price of each unit of capital is $15. If..

Preference methods of valuing non-marketed goods : Economists tend to favor revealed preference methods of valuing non-marketed goods like environmental quality and natural resources. What are two reasons why revealed preference methods may lead to poor estimates of these values?

What is equilibrium wage and employment level : In a particular industry, labor supply is Es = 10 + w and labor demand is Ed = 40 – 4w, where E is the level of employment and w is the hourly wage. What is the equilibrium wage and the employment level if the labor market is competitive? What is the..

Description of the simple regression : Review Chapter 8 of the Field text for a description of the simple regression and an example of conducting a simple regression using PASW. Review Chapter 5 from the APA manual, "Displaying Results."

What is the acceleration of the sled : A very smart three year old child is given a wagon for her birthday. She refuses to use it. "After all," she says, "Newton's third law says that no matter how hard I pull, the wagon will exert an equal but opposite force on me. So I will never be ..

What is market-clearing wage if immigration is not allowed : Assume that labor demand for low-skilled workers in the United States is: w = 24 – 0.1E where E is the number of workers (in millions) and w is the hourly wage. Assume there are currently 120 million domestic U.S. low-skilled workers who supply labor..

What procedures auditor use to gather additional evidence : Using either Excel or ACL, identify the stores for which sales appear to be out of line with the other stores and require additional evidence. What procedures would the auditor use to gather the additional evidence?

User Account

All Pages