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Hi, I need urgent help with this assignment. Could you please help me with this? Could you please solve these for me? Thanks in advance
Hi, I need urgent help with this assignment. Could you please help me with this? Could you please solve these for me?
Thanks in advance
1. (5+20=25 pts) Firms have two inputs to production, skilled and unskilled labor, which are imperfect substitutes. A minimum wage is introduced for unskilled workers. (a) Show on a graph the impact of the minimum wage on unskilled employment and wages, and indicate whether supply and demand are equal in the unskilled labor market. (b) Show on a different graph the impact of the minimum wage on the demand for skilled labor. You should show substitution and scale effects and accompany the graph with intuition. 2. (3+3+5+9=20 pts) A study of the sta at the nuclear submarine plant in Severodvinsk shows the following demand and supply functions for technicians able to defuse in 20 seconds nuclear warheads that have been programmed by international terrorists: Demand curve : w = 40, 000 50T (1) Supply curve : w = 10, 000 + 100T. (2) (a) Carefully draw these curves on a welllabelled graph. (b) What would to and T be if the labor market (and product market) were perfectly competitive (use algebra)? Show these points on the graph. (c) In fact, everyone in Severodvinsk works for the nuclear submarine manufacturer. Add to the graph (and label) a line that helps determine w and T. (d) What wage will it pay and how many people will be hired (use algebra)? Show your answers on the graphStep by Step Solution
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