Equilibrium wage-employment if labor market is competitive

Assignment Help Business Economics

Reference no: EM13741670

In a particular industry, labor supply is ES=20+w and labor demand is E D=60-4w , where E is the employment level and w is the hourly wage.

a) What are the equilibrium wage and employment if the labor market is competitive?

b) What is the unemployment rate? [Help: the unemployment rate is defined as the number of unemployed workers divided by the labor force, that is, the number of employed plus the number of unemployed workers.]

c) Suppose the government sets a minimum hourly wage of $10. How many workers would lose their jobs? How many additional workers would want a job at the minimum wage? What is the unemployment rate?

Reference no: EM13741670

Questions Cloud

Balance the supply and demand for loan able funds : In the long run the interest rate adjusts to adjust to balance the supply and demand for loan able funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.

Use the sticky wage theory of aggregate supply : Use the sticky wage theory of aggregate supply to explain what will happen to output and the price level in the long run. What role does expected price level play in the adjustment?

National savings-domestic investment and net capital outflow : Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..

Result in lower prices if they were to occur in isolation : Select the scenarios that result in lower prices if they were to occur in isolation? Consumers can make costly mistakes when not enough information is available. Which of the following represents a market solution to obtaining costly information?

Equilibrium wage-employment if labor market is competitive : In a particular industry, labor supply is ES=20+w and labor demand is E D=60-4w , where E is the employment level and w is the hourly wage. What are the equilibrium wage and employment if the labor market is competitive?

Government raises the minimum wage : Suppose that the government raises the minimum wage to $10.10. Thinking of the four Marshall's Rules of Derived Demand as they apply to a particular industry, analyze the conditions under which job loss among teenage workers in that industry would be..

Use push mowers and riding mowers : Ann owns a lawn mowing company. She has 240 lawns she needs to cut each week. Her weekly revenue from these 240 lawns is $8,400. If given an 18-inch deck push mower, a laborer can cut each lawn in two hours. If given a 60-inch deck riding mower, a la..

Increase the money supply : The Fed wants to increase the money supply (which is currently 4,000) by 200. The money multiplier is 3. For each 1 percentage point the discount rate falls, banks borrow an additional 20. Explain how the Fed can achieve its goals using the following..

State whether it is considered money in the united states : For each of the following, state whether it is considered money in the United States. Explain why or why not.

User Account

All Pages