How elasticity or inelasticity of supply determines wages

Assignment Help Microeconomics
Reference no: EM13279109

Immigration is a fact of life in the United States. This will lead to a big boost in the labor supply. What field would you rather be in: A field where the demand for your kind of labor is elastic or a field where the demand for your kind of labor is inelastic?

The answer is: I want to be in a field where the demand for my labor is elastic because a big  increase in supply won't push down my wage much. (However, I am having difficulty grasping why this is true. What is the principle behind this? I can't seem to figure out how elasticity or inelasticity of supply determines wages.)

Reference no: EM13279109

Questions Cloud

What are the advantage and disadvantage of each design : Compare the performance of the basic latch (build with 74LS00 NAND gate), the master-slave flip-flop (7476), and the edge-triggered flip-flop (74LS76). What are the advantage and disadvantage of each design
Study of control theory : Study of control theory is an academic discipline in itself and is known as cybernetics - Explain why feed-forward control
How much should you have paid for the bond : You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8% annually. Interest will be paid at the end of each year. If you expect to earn a 10% nominal rate of return on this bond, how much should you have paid fo..
What potential difference exist between two rectangular face : A large brass washer has a 2-cm inside diameter, a 5-cm outside diameter, and is 0.5 cm thick. Its conductivity is s = 1.5 × 107 S/m. The washer is cut in half along a diameter, and a voltage is applied between the two rectangular faces of one par..
How elasticity or inelasticity of supply determines wages : Immigration is a fact of life in the United States. This will lead to a big boost in the labor supply. What field would you rather be in: A field where the demand for your kind of labor is elastic or a field where the demand for your kind of labor..
What are the components of the momentum of the electron : An electron of mass 9.1 * 10^-31 kg is moving in the xy-plane; its speed is 2.0 * 10^5 m/s, What are the components of the momentum of the electron
What is the annual rate of interest : 1st bank offers you a car loan with a monthly payment of $17.00 per $1,000 borrowed. Payments are made at the end of each month. The term is 5 years. What is the annual rate of interest?
Calculate the corresponding grade : A certain CS professor gives five-point quizzes that are graded on the scale 5-A, 4-B, 3-C, 2-D, 1-F, 0-F. write a program that accepts a quiz score as an input and uses a decision structure to calculate the corresponding grade?
What does this mean about investors expectations : What does this mean about investors' expectations about inflation or MRP? .c. How can the investor be relatively certain to achieve a 6.5% return?

Reviews

Write a Review

Microeconomics Questions & Answers

  Use of the understanding of demand

If total consumer expenditure remains the same after a new tax is imposed on cigarettes then spending on cigarettes will decrease and spending on other goods will increase.

  Computing operating cash flow for project

Operating Cash Flows. Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $120,000 per year. Direct production costs are $40,000 and the fixed costs of maintaining the lawn mower factory are $15,000 a year.

  Draw demand and supply on a graph

Calculate the equilibrium price and quantity that will prevail in a free market and calculate the price elasticity of demand and the price elasticity of supply at the equilibrium.

  Explain current health of the economy

Explain what the new equilibrium point means in terms of GDP and the price level. Based on your understanding of the current health of the economy, was this program successful? Why do you say this?

  Why the standardized test scores inconsistent

Harvard, Yale and Princeton all charge relatively high tuition. Still each uses ACT and SAT score as admission criteria. Are charging a relatively high tuition and using standardized test scores inconsistent

  Depreciation schedule, optimum economic life and after-tax r

An asset is to be used in a project that will last 5 years. The MACRS property class for this asset is 3 years.      If B = l0, 000 and S=3,000 at the end of year 5, determine the depreciation schedule.

  Impact on the equilibrium price and quantity

Show, using supply and demand analysis, impact on the equilibrium price and quantity of new Hybrid automobiles when following occurs. Using graphs, explain the change in equilibrium price and quantity,

  Estimate an index model running regression

Think the single-index model. The alpha of a stock is 0 percent. The expected return on the market is 12 percent. The risk-free rate of return is 6 percent.

  Label the price charged and the deadweight loss to society

Suppose that a natural monopolist was required by law to charge average total cost. On a diagram, label the price charged and the deadweight loss to society relative to marginal cost pricing. Briefly explain your diagram and comment on the results..

  How much should be deposited now

What interest rate does she need to get to be able to retired as desired and compounded semi-annually, how much should be deposited now?

  Question about law of demand

The law of demand says that the price and quantity demanded are inversely related. Thus, is demand curve positively or negative sloped?

  Government expenditure in increasing gdp

An increaseing governemtn expenditure in increasing GDP when it is financed by rasing taxes or slling government bonds to the general public or else.

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