Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need an aswer for b) Suppose that Government is currently evaluating a project, which is going to hire native language teachers and requires in

I need an aswer for b)
image text in transcribed
Suppose that Government is currently evaluating a project, which is going to hire native language teachers and requires in total 6000 hours of teaching. Let's denote the hour taught by native language teacher by letter L. Thus, the project's demand for teaching hours by native language teachers is described by the demand function La project = 6000. Suppose that the following is known about the current (pre-project) market for native language teachers: - there is no involuntary unemployment among the native language teachers - the Government does not apply any taxes or subsidies in this particular labour market; - the current (pre-project) demand for teaching hours by native language teachers is described by the demand function La = 42000 - 400Wa, where Lu denotes the quantity of teaching hours (by native language teachers) demanded and Wadenotes the demander price per teaching hour; - the current (pre-project) supply of teaching hours by native language teachers is given by the supply function Ls = 200W., where Ls refers to the quantity of teaching hours supplied by native language speakers and W. denotes the supplier price per teaching hour; Suppose that there are no changes expected in the pre-project demand or supply functions during the start to the end of the project, i.e. the relationship between the price and the quantity demanded by others as well as the relationship between the price and the quantity supplied, remain described by the same functions as outlined earlier. a) Find the financial cost of the teaching hours demanded by the project? b) Find the social economic cost of the teaching hours demanded by the project? Illustrate the pre-project situation as well as the changes caused by the project in this particular labour market on the graph. Use numerical values and identify clearly the equilibrium in the market that exists prior to the project and the equilibrium that will exist in this market if the project gets implemented. Show on the graph clearly the area, which represents economic cost of labour hours, which Project requires

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

Finance For Non-Finance Executives

Authors: Anurag Singal

1st Edition

1952538327, 9781952538322

More Books

Students also viewed these Accounting questions

Question

=+9. Think about a campaign direction.

Answered: 1 week ago

Question

=+Who is the audience?

Answered: 1 week ago