Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18-22 answers and explanation as to why and how! Thank you! d. increased; $8,000; $10,000 18. In the gure above, the decreased coinsurance rate leads

image text in transcribed

18-22 answers and explanation as to why and how! Thank you!

image text in transcribed
d. increased; $8,000; $10,000 18. In the gure above, the decreased coinsurance rate leads to a a. deadweight loss of $20 b. deadweight loss of $100 0. deadweight loss of $800 (1. deadweight loss of $1,200 19. When coinsurance is extended to a market with upward sloping supply, the welfare losses per unit increase because: a. more units are sold. b. more units are demanded. (3. resources are supplied that would not otherwise have been supplied. d. Answers (b) and (c) are correct. 20. Suppose that the demand for labor is summarized by the equation below which relates wage (price of labor) to quantity of labor demanded: wn=4010LD. The supply of labor is summarized by the equation below which relates wage to quantity of labor supplied: 103 = 10 + 5 Ls. The equilibrium wage is _ and the equilibrium labor force is : a. $5; 4 b. $10; 3 6. $15; 3 d. $20; 2 21. Suppose that the employer in the previous question provides an insurance benet at a cost 01 $2 per hour of labor. It is worth $1 per hour to the workers. The new equilibrium gross wage (money wage + benet) will be and the new equilibrium employment will be a. $20.7;'1.93. b. $20.7; 2. 0- $19-7; 1.93- d. $19.7; 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

7th edition

134738314, 9780134738116 , 978-0134738321

More Books

Students also viewed these Economics questions