What is the competitive equilibrium outcome in labor market

Reference no: EM13699482

There are two distinct sectors: taxidermists (X) and tap dancers (T). It is surprising that there is complete labor mobility between the two sectors. There are 200 equally talented workers who supply their labor in elastically. The demand for taxidermists is EX = 190 - 10 WX, and the demand for tap dancers is ET = 160 -5 W T.

a) What is the competitive equilibrium outcome (equilibrium wage and employment level in each sector) in this labor market?

b) What would happen if the government imposed a minimum wage of $12 that covered only the tap dancer sector?

Reference no: EM13699482

Questions Cloud

According to keynesian theory : According to Keynesian theory:

Gross domestic product and employment : The purchase of copy paper by Intel for the company staff, The purchase of an electronic handheld organizer by a sales manager to keep track of clients, The purchase of a new aircraft carrier by the Navy. Next, identify whether each item falls into t..

The daily demand and supply of fish in fire island : The daily demand and supply of fish in Fire Island, NY is described by the following equations: Demand: Price Demand =2, Supply: Quantity supplied = 5. What is the market price of fish in Fire Island? How much is consumer and producer surplus?

Compare the new demand curve or supply curve : Draw a demand–supply graph and label the axes with the price and quantity of khaki pants. Next, for each scenario, draw the appropriate demand–supply curve. Compare the new demand curve or supply curve by drawing it on the same graph.

What is the competitive equilibrium outcome in labor market : There are two distinct sectors: taxidermists (X) and tap dancers (T). It is surprising that there is complete labor mobility between the two sectors. There are 200 equally talented workers who supply their labor in elastically. The demand for taxider..

Foreign-currency exchange and on net capital outflow : How do these things affect the U.S market of foreign-currency exchange and on net capital outflow (NCO): A tax reform that imposes higher capital gains tax to Americans involved in offshore banking?

In multiple regression analysis : In multiple regression analysis, explain why the typical hypothesis that analysts want to test is whether a particular regression coefficient ( B) is equal to zero ( H0: B 0) versus whether that coefficient is not equal to zero ( H1: B 0).

Accounting for some of the decline in attendance : Movie attendance dropped 8 percent as tickets prices rose a little more than 5 percent. What is the price elasticity of demand for movie tickets? Could price elasticity be somewhat overestimated from these figures? That is, could other things have ch..

Home country problem : Home Country: Given that the total market of the Home country is 900,000 units. Given the equations and parameter values above, solve for the equilibrium number of automobile companies, the number of cars each firm will produce, and the price of the ..

User Account

All Pages