Calculate the equilibrium wage and employment

Assignment Help Business Economics
Reference no: EM13839785

Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w.

a) Calculate the equilibrium wage and employment if the market is free.

b) Suppose the Cleaners Union, of which all cleaning workers must be members, requires that employers provide workers with high-tech protection equipment, which increases the employers cost of labour by approximately $2 per hour. However, most workers think that this equipment is not necessary, because their regular, inexpensive outfit does about the same job. Calculate the equilibrium wage and employment under the new equipment requirement.

c) Draw a graph to show the effect of the requirement.

Reference no: EM13839785

Questions Cloud

Calculating tax incidence : Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. The amount of the tax on a case of beer is $_______ per case. Of this amount, the burden..
Innovative product and service offerings ethically neutral : Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Assuming that ad valorem tax is negligible : Calculate the Economic Life in STB/month for an oil lease with WI = 100%, NRI = 87.5%, lease operating expense = $5,000 per month, price of oil = $15/STB, price of associated gas = $2.25/Mscf, GOR = 500 scf/STB, oil and gas severance taxes = 7.085%. ..
When comparing different alternatives : When comparing different alternatives?
Calculate the equilibrium wage and employment : Suppose the labour market in the house cleaning industry in Quebec City can be described by the following demand and supply equations: LD = 400 - 10w and LS = 40 + 20w. Calculate the equilibrium wage and employment if the market is free. Draw a graph..
The income elasticity of demand : RAND study found that the income elasticity of demand for dental care is 0.15. Over the last one decade, income of the population has increased by 21%. Therefore, the income effect alone should a)Increase the demand for dental care by about 3% b)Incr..
Explain how the revenue from medical supplies : Explain how the revenue from medical (pharmacy) supplies is currently handled for profit and loss reporting purposes. Is there a problem with the current system. Is there a better way of reporting this revenue? If so, what is it
What is your profit : On January 1, you sold one March maturity S&P 500 Index futures contract at a futures price of 1,200. If the futures price is 1,250 on February 1, what is your profit? The contract multiplier is $250.
What should a futures contract with a one year maturity : The current level of the S&P 500 is 1,200. The dividend yield on the S&P 500 is 2%. The risk-free interest rate is 1%. What should a futures contract with a one-year maturity be selling for?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Analyze the forms of aid to developing nations

Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.

  Suppose insurance is offered at fair actuarial price

Suppose you could get an individual insurance to protect you against the unauthorized access to your laptop. The chance that someone will gain access to your machine is 0.10. In that case you will incur a loss of $200 (valuable information becomes av..

  Tax burden split between buyer also seller

Elucidate how is the tax burden split between buyer also seller.

  Example of an economic trade-off between consumption

The Law of Large Numbers explains why it is unlikely that the actuarially fair premium for an insurance policy will be the same for a small start up firm as it will be for a large employer such as a university. Depending on assistance from family and..

  Condemned utilitarianism as an immoral ethical theory

The German philosopher Immanuel Kant condemned Utilitarianism as an immoral ethical theory mainly because:

  The madison location is the central headquarters for badger

The Madison location is the central headquarters for Badger Widgets. They have a full IT staff along with an established network infrastructure that includes Windows Server 2008 servers

  Variable is almost normally distributed

If the variable is almost normally distributed does that mean you use common distribution.

  Standpoint of equity and efficiency

Discuss each of the following statements from the standpoint of equity and efficiency. Everyone in society should be guaranteed the best health care possible. When workers are laid off, they should benefits until they find a new job. Which of the fol..

  Elucidate what might cause these fluctuations in supply

Suppose the demand for loanable funds was stable but the supply fluctuated from year to year. Elucidate what might cause these fluctuations in supply.

  Explain how computations were correct

there was a month were employment and the unemployment rate rose. Suppose the computations were correct, explain how is it possible for both to have increased.

  Explain how should firm produce in order to maximize profit

Explain how much should firm produce in order to maximize profit. Illustrate what is maximum profit that firm can generate at output level (your answer in a).

  Write a formula which describes the marginal product

Write a formula which describes the marginal product of labor in the short run as a function of the amount of the labor used.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd