What percentage will wages increase after the factory opens

Assignment Help Business Economics

Reference no: EM13886550

Consider a city where a new automobile factory is scheduled to open. The factory will employ 1,000 people, and the city's employment multiplier for the automobile industry is 2.5. The city's elasticity of labor supply is 1.8, and its elasticity of labor demand is -0.7. At present, 50,000 people work in the city. By what percentage will wages increase after the factory opens? How many people will work in the city? Show your work.

Reference no: EM13886550

Questions Cloud

Calculate consumer surplus and LWEs profit with that price : There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Q = 60 – P. Lake Wobegon Electric’s (LWE) cost of producing electricity is. If the regulators of LWE want to make sure that there is no deadweight loss in this ..

Determine the optimal bundle of stated prices and income : For the following utility functions and prices. Determine the optimal bundle of x1 and x2 given the stated prices and income. Illustrate the optimal consumer choice decision in each of the two cases below.

What is the relationship between GPA and Job Selection : What is the relationship between GPA and Job Selection? (inverse or direct) What are other factors that affect job selection?

What is price per square foot of housing 5 miles from center : Consider a homocentric city where the cost of commuting is $20 per mile per month. A household located 5 miles from the city center lives in a 1,000 square foot house that costs it $500 per month. Non-land costs per house are $100 per month and there..

What percentage will wages increase after the factory opens : Consider a city where a new automobile factory is scheduled to open. The factory will employ 1,000 people, and the city's employment multiplier for the automobile industry is 2.5. The city's elasticity of labor supply is 1.8, and its elasticity of la..

Revenue by selling identical units of output : A price searcher maximizes his revenue (from a given output) by selling identical units of output at the same price to all customers, for if she sold identical units at different prices to different customers, it would be possible to increase the rev..

Characteristics of the modern bureaucracy : Discuss your view about the modern bureaucracy, particularly regarding the size of the bureaucracy, its role in daily public life, and characteristics of the civil service workforce. In particular, discuss whether it should be easier to hire and term..

These most likely warrants : Niki owns Solar Corporation. Niki uses Solar’s funds to pay her personal expenses, creates Pure Green Corporation to engage in the same business as Solar, transfers Solar’s assets to Pure Green, and petitions Solar into bankruptcy. These most likely ..

Health insurance companies are oligopolies : Health insurance companies are oligopolies, and one of the criticisms of oligopolies is the adverse impacts these firms have on income distribution. Discuss in relation to the policies and practices of health insurance companies.

User Account

All Pages