EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 1RQ
To determine
To explain: Demanders and suppliers of input market and their assumptions.
Expert Solution & Answer
Answer to Problem 1RQ
Demanders in input market are production units and suppliers are households in an economy.
Explanation of Solution
In the supply
Assumptions of demanders
- The price for labor is inversely related to the quantity of labor available in the market.
- Firms are price −takers
- Marginal Product of labor is decreasing.
- Technology remains constant.
Assumption of suppliers
- Sole suppliers of laborers is household.
- Inverse relation between wage rate and demand of labor in market.
- Law of supply holds in labor market.
- Quantity of labor is stagnant.
Economics Concept Introduction
Introduction:
Labor market is an input market which interacts between wage rate and labor. An equilibrium in labor market is attained when demand and supply curve of workers intersect each other and wages are determined.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The computer market in recent years has seen many more computers sell at much lower prices. What determinant(s) for demand or supply are/is most likely to explain this outcome?
What are the main characteristics of a lean supply system?
Give an example of how a business implements the law of demand in its pricing structure. How do consumers react as prices are lowered? Is it a linear relationship between price and demand?
Chapter 13 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 13.1 - Prob. 1MQCh. 13.1 - Prob. 2MQCh. 13.2 - Prob. 1TTACh. 13.2 - Prob. 2TTACh. 13.3 - Prob. 1MQCh. 13.3 - Prob. 2MQCh. 13.5 - Prob. 1MQCh. 13.6 - Prob. 1MQCh. 13.6 - Prob. 1TTACh. 13.6 - Prob. 2TTA
Ch. 13.6 - Prob. 1.1TTACh. 13.6 - Prob. 2.1TTACh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQCh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.10P
Knowledge Booster
Similar questions
- Identify and explain the various factors that can cause a shift in the supply curve for a specific product or industry. Discuss the short-term and long-term implications of these shifts on market equilibrium and pricing.arrow_forwardExample 2: In fall of 2011, the National Christmas Tree Association decided to impose a fee/tax of $0.15 per tree sold.² They claimed the tax revenue raised would fund a new marketing campaign for Christmas tree growers in response to growing plastic tree imports. The proposal quickly drew controversy: some argued that the fee/tax would be passed along in higher prices to consumers, but the National Christmas Tree Association says no. How does the answer to this question depend on the assumption about the price elasticity of demand? a. Consider two graphs of the market for Christmas trees. The supply curve in each market is assumed to be the same. In the left graph, assume the price elasticity of demand is relatively inelastic and in the right graph, assume the price elasticity of demand is relatively elastic. Add labels on your diagram to identify the equilibrium price and quantity of trees before the tax. b. Now, suppose retailers are assessed a tax of amount for each tree sold.…arrow_forwardThe quantity demanded x each month of Russo Espresso Makers is 250 when the unit price p is $132. The quantity demanded each month is 1000 when the unit price is $102. The suppliers will market 700 espresso makers when the unit price is $66. At a unit price of $96, they are willing to market 2200 units. Both the supply and demand equations are known to be linear. a.)find the demand equation b.)Find the supply equation C.)Find the equilibrium pointarrow_forward
- Why would demand for steel may decline when demand for aluminum rises? What kind of relationship exists between the two?arrow_forwardGiven p=square root x-2 and p= square root 8-x and the price is given in thousands. Identify which of these could represent a demand function and which is a supply functionarrow_forward***Just the last paragraph of the question please*** A ski resort in the White Mountains has conducted market and cost studies, and has determined that the demand and supply for ski-lift tickets at their resort are represented by: Qd=1750 - 5P - 8PR + 2PB; Qs=50 + 20P - 3PE. In these equations, P represents the price of a full-day lift ticket, in dollars per ticket; PR is the price of a ski-rental package; PB is the price of a pint of beer at the local pub in the nearby town; and PE is the price per megawatt hour for the electricity used to run the chair lifts on the ski slopes. Based on the equations above, determine whether the beer in the local pub is a substitute or complement to skiing. Briefly explain your answer. Suppose the price of a ski-rental package is $20, the price of a pint of beer is $5, and the price of electricity is $150 per megawatt hour. Calculate equilibrium price and quantity of ski-lift tickets. Now consider the more general relationship between the price of…arrow_forward
- for the below table, can you provide the supply function and list out the different variables and constants for it?arrow_forwardConsider the special case of perfectly inelastic Demand. Describe exactly what this means and what the Demand Curve graph would look like. What would happen to equilibrium price and quantity if the Supply Curve shifted? What could cause perfectly inelastic Demand? Give an example or two of a product with almost perfectly inelastic demand. Do you think market price is a good allocative mechanism in such a situation?arrow_forwardWhat is the inverse of this supply function? Qs =P-20arrow_forward
- the inverse demand function for mangos is p=6-0.5q, where q is the number of crates that are sold. The inverse supply function is p=q. In the past there was no tax on mangos but now a tax of 3$ per crate has been imposed on suppliers. What are the quantities produced before and after the tax was imposed? How much tax is raised?arrow_forwardAt a price of $2.28 per bushel, the supply of barely is 7,500 million bushels and the demand is 7,900 million bushels. At a price of $2.37 per bushel, the supply is 7,900 million bushels and the demand is 7,800 million bushels. (A)Find a price-supply equation of the form p = m x + b. (B)Find a price-demand equation of the form p = m x + b. (C)Find the equilibrium point.arrow_forwardDemand and supply function for a firm is demand equations QD = 3550 - 266P supply equations QS = 1800 + 240P What is equilibrium price and quantity.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning