microbook_3e-page36 - a week x 40 50 60 hours There’s a...

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Market Demand Sum of all individual demand curves (sum of all individual quantities demanded at each price) quantity demanded by: price A B C market demand $4 4 + 0 + 4 = 8 $2 8 + 3 + 9 = 20 Supply x If you were offered a job for $3 an hour, how many hours a week would you work? x You wouldn’t take a job that pays so little. x At $50 an hour, how many hours a week? x 40, 50, 60 hours? x At $100 an hour, how many hours
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Unformatted text preview: a week? x 40, 50, 60 hours? There’s a limit to how much you can work in a week. x Ceteris paribus – ex. if there’s very high inflation, increase in wage reflect inflation and therefore will not increase output (hours worked) An increase in price – wage is the price of labor – will ceteris paribus increase the quantity of labor supplied and vice versa. Page 36...
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This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.

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