tailieunhanh - Bài tập về Kinh tế vĩ mô bằng tiếng Anh - Chương 9

Tham khảo tài liệu 'bài tập về kinh tế vĩ mô bằng tiếng anh - chương 9', kinh tế - quản lý, kinh tế học phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 9 The Analysis of Competitive Markets CHAPTER 9 THE ANALYSIS OF COMPETITIVE MARKETS EXERCISES 1. In 1996 the . Congress raised the minimum wage from per hour to per hour. Some people suggested that a government subsidy could help employers finance the higher wage. This exercise examines the economics of a minimum wage and wage subsidies. Suppose the supply of low-skilled labor is given by LS 10 w where L is the quantity of low-skilled labor in millions of persons employed each year and w is the wage rate in dollars per hour . The demand for labor is given by LD 80 - 10w. What will the free market wage rate and employment level be Suppose the government sets a minimum wage of 5 per hour. How many people would then be employed In a free-market equilibrium LS LD. Solving yields w 4 and LS LD 40. If the minimum wage is 5 then LS 50 and LD 30. The number of people employed will be given by the labor demand so employers will hire 30 million workers. a. 117 Chapter 9 The Analysis of Competitive Markets b. Suppose that instead of a minimum wage the government pays a subsidy of 1 per hour for each employee. What will the total level of employment be now What will the equilibrium wage rate be Let w denote the wage received by the employee. Then the employer receiving the 1 subsidy per worker hour only pays w-1 for each worker hour. As shown in Figure the labor demand curve shifts to Ld 80 - 10 w-1 90 - 10w where w represents the wage received by the employee. The new equilibrium will be given by the intersection of the old supply curve with the new demand curve and therefore 90-10W 10W or w per hour and L 10 45 million persons employed. The real cost to the employer is per hour. Figure 2. Suppose the market for widgets can be described by the following equations Demand P 10 - Q Supply P Q - 4 where P is the price in dollars per unit and Q is the quantity in thousands of units. a. What is the equilibrium price and quantity To find