assignment6.pdf - Part I 5 a There will be no effect on the...

This preview shows page 1 - 2 out of 2 pages.

Part I 5) a. There will be no effect on the North but wages will decrease to $13.5 in the South. b. 1500 workers will migrate to the North. The ratio of wages in the North to the wages in the South will be approximately 1.1 (14.925/13.5675). c. Wages in the North will decrease and the South will increase so they will eventually settle and become the same in both regions. Employment will settle as well at 600,000 in both regions. 9) a. She will rent 20 push mowers and 20 workers. b. She will rent 5 push mowers and 5 workers. c. She will rent push mowers with 20 workers and her profit will be $11,000. d. She will rent riding mowers with 5 workers and her profit will be $11,600. 11) For very elastic labor supply, the result will be small and fast and for very inelastic labor supply, it will be large and slow. This is because when labor supply is inelastic, it does not
Image of page 1

Subscribe to view the full document.

Image of page 2

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern