a 20 5 Suppose a carpenters wage rises from 1000 to 11 per hour resulting in a

A 20 5 suppose a carpenters wage rises from 1000 to

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a. 20% 5. Suppose a carpenter’s wage rises from $10.00 to $11 per hour resulting in a decrease in the labor demanded for some other worker. Are these workers substitutes or complements? a. complements 6. Suppose production worker demands for modest wage increases result in significant decreases in production labor demanded as workers are replaced by technology. Which of the following is likely to be accurate for these workers in this scenario? a. Elastic / highly substitutable b. Inelastic / highly substitutable c. Elastic / minimally substitutable d. Inelastic / minimally substitutable 7. If a type of worker with an own wage elasticity demand has an elasticity value of -0.75 and decrease in wage results in the decrease in labor demanded for another type of worker, would these workers likely be substitutes or complements?
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a. substitutes Graphing/Calculating Questions 8. Suppose a labor market for workers in which L D = 42 – 3W in which there is a 10% increase in wage from $10. Calculate the elasticity value for these workers and identify the type of elasticity. Be sure to show your calculations in detail. a. W 1 = $10, W 2 = $11, L 1 = 12, L 2 = 9 b. η = 9 12 12 11 10 10 = 3 12 1 10 = 3 12 10 1 = 30 12 =− 2.5 Elastic 9. Solve the problem provided in question 8 using the mid-point formula. Be sure to show your calculations in detail.
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  • Fall '19
  • Scott Schaefer

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