Please answer questions for this chapter
Chapter 4. l. The demand for teaching assistants at a large, state university is given by Ld = 2000 1.5&), where (a is the salary per class. Calculate the ownwage elasticity for teaching assistants when to = 550. Is the labor demand curve elastic or inelastic at this point? What about if to = 900 ? Suppose that labor demand for male factory workers in an auto plant is given by L: = 400 40mm + 50(of, where mm is the hourly wage rate for men and (of is the hourly wage of females. Calculate the own-and cross-wage elasticity of demand at the point where mm = 10 and (of = 5. Is the lablor demand curve for males elastic or inelastic at this point? Are male and female workers gross complements or substitutes? . In an economy, Ld =170 50), while L5 = 20 +100), where (a is the hourly wage rate. (a) What is the equilibrium level of employment and wage? (b) If the present minimum wage is $7.15/hr and the government raises it to $7.50/hr, how many workers will lose their j obs? What is the unemployment rate? (c) If instead the government voted to raise the minimum wage to $12/hr, how many workers will lose their jobs? What is the unemployment rate? (d) The workers who lose their jobs in (c) are able to move to another sector that is not covered by the minimum wage (and are willing to work for any positive wage). Before the unemployed workers arrive, aggregate labor demand and labor supply are given by If" 2 210 20a) and L\" = 25 + 5(1), respectively. What is equilibrium wage in the uncovered sector before and after the minimum wage is increased to $12/hr? 4. Suppose that aggregate labor demand for agricultural workers in a developing country is given by H = 2500 _ 750; _ 5 Pa! where a) is the hourly wage rate for agricultural labor and Pa is the price of an acre of farmland. Calculate the ownwage elasticity of labor demand at the point where a) = 3 and Pa = 200. Is the labor demand curve for workers elastic or inelastic at this point? Are workers and land gross complements or substitutes? 5. In a particular industry, labor demand is perfectly inelastic and is given by Ld = 500 , while L' = 250 + 250) , where a) is the hourly wage rate. (a) What is the level of employment, wage, and unemployment rate if the minimum wage is set at $10/hr? (b) If the minimum wage is raised to $12fhr, how many workers will lose their jobs? What is the unemployment rate? 6. Use the following data for two industries (A and B) to answer the questions. Industry A Industry B $8.00/hr 15,000 $9.00/hr 20,000 $9.00/hr 10,000 $10.00/hr 10,000 (a) In which industry would a union be more likely to organize workers? Why? (b) In which industry would a union be more successful in winning larger wage gains for union members
