Suppose the demand for labor market is given by labor

Assignment Help Business Economics

Reference no: EM131109948

Suppose the demand for labor market is given by Labor = 408−2wage and the market supply is given by Labor = 10wage.

a. In a graph draw the supply and demand curves and find the equilibrium wage and amount of employment. Show the seller’s and consumer’s surplus.

b. Suppose a minimum wage is placed on wages that sets the wage at $50. Find the quantity demanded and supplied, and the amount of unemployment.

c. Calculate the deadweight loss from the minimum wage.

Reference no: EM131109948

Questions Cloud

Women in this market by working for lower wages : Some industries are dominated by women because women are more productive than men in those industries. For example, mushroom pickers tend to be women because their smaller hands don’t bruise the mushrooms. Often men are able to compete with women in ..

Calculate the conversion price : During the past 2 years Meacham Industries issued three separate convertible bonds. For each of them, calculate the conversion price: a. A $1,000-par-value bond that is convertible into 10 shares of common stock. b. A $2,000-par- alue bond that is co..

Effective way to reduce auditing costs when assessing : Gemayel et al. (2011) demonstrated that RSS can be an effective way to reduce auditing costs when assessing the true value of an account is time consuming (and, consequently, expensive) by allowing for smaller sample sizes than would be necessary ..

Why you chose the three points of view : Explain why you chose the three points of view that you did for each world.

Suppose the demand for labor market is given by labor : Suppose the demand for labor market is given by Labor = 408−2wage and the market supply is given by Labor = 10wage. Suppose a minimum wage is placed on wages that sets the wage at $50. Find the quantity demanded and supplied, and the amount of unempl..

What do you think about creighton claim : Tom Creighton hired Destroy, Inc., a demolition company, to level an old building on a busy downtown lot. Destroy, Inc. was given full rein to decide on the amount of explosives needed and the placement of the charges. What do you think about Crei..

What occupation would be better if interest rate was zero : You’re 20 years old, and you’re trying to decide which career path to take based on the future expected streams of income. Occupation A has you earning $15,000 for 5 years, then $25,000 for then next 30 years. What occupation would be better if the i..

What is the present value of the lease outflows : N and M Corp. is considering leasing a new machine for $25,000 per year. The lease arrangement calls for a 5-year lease with an option to purchase the machine at the end of the lease for $3,500. The firm is in the 34% tax bracket. What is the present..

Why might this situation occur : An article indicated that when new GAAP rules were issued related to pensions it caused an increase in the liability for pensions for approximately 20% of companies. Why might this situation occur?

User Account

All Pages