What would total wages paid and business incomes

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In the tables below are the demands for labor and the levels of domestic output that can be produced at each level of employment in two countries.

Country X

 

Real wage rate

Quantity of labor demanded

Real output

$12

140

$1680

11

160

1780

10

180

1880

9

200

1980

8

220

2080

7

240

2180

6

260

2280

Country Y

 

Real wage rate

Quantity of labor demanded

Real output

$12

20

$ 240

11

40

480

10

60

540

9

80

880

8

100

1000

7

120

1100

6

140

1180

 

(a) What would the wage rates be if employment was 200 in country X and 140 in country Y?

For country X the wage rate would be 9, and country Y the wage rate would 6

(b) What would total wages paid and business incomes be in each country given employment conditions in (a)?

(c) If 20 workers migrate from country Y to country X, what will happen to wage rates, output, business incomes, and total wages?

Reference no: EM13950311

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