HW6AWilson - Angela Wilson Econ 2600 CRN 30585 Assignment 6...

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Angela WilsonEcon 2600CRN 30585Assignment 6Chapter 13 Questions & Problems1. The demand for a factors is a derived demand; that is, it is derived from and directly related to the demand for the product that the resources go to produce7. As the wage rate rises, the quantity supplied of labor rises, ceteris paribus. At the equilibrium wage rate, the quantity supplied of labor equals the quantity demanded of labor14. A. The higher (lower) the elasticity of demand for the product, the higher (lower) the elasticity ofdemand for the labor that produces the product. B. The higher (lower) the ratio of labor cost to total cost, the higher (lower) the elasticity of demand for labor (i.e., the greater (less) the cutback in labor for any given wage increase)C. The more (fewer) substitutes there are for labor, the higher (lower) the elasticity of demand for labor.Working with numbers and Graphs1. (MPP) A=9, B=8, C=7, D=6, E=5, (TOTAL REVENUE) F=120, G=192, H=256, I=312 J=360 K=400 (MRP) L=0, M=72, N=64, O=56, P=48, Q=402. 4

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