Solve the following
9. How price changes impact the labor market Consider the labor market for the fast-food industry, which consists mainly of high school and college students, Assume that all fast food restaurants are profit maximizing. The following calculator shows the market demand curve (blue curve) and market supply curve (orange curve) for student workers, who are responsible for making cheeseburgers. At any time in this problem, you can click the Reset to Initial Values button to return the elements in the calculator to their original positions, You wil not be graded on any changes to the calculator; it's just here to help you answer the following questions. Tool tip: You can directly change the values in the boxes with the white background by clicking in the box and typing. The graph and any related values will change accordingly. Graph Input Tool (?) LABOR MARKET CALCULATOR I Wage rate Labor demanded Labor supplied Price of a WAGE RATE cheeseburger QUANTITY OF LABOR (Thousands of worken) when the price of a cheeseburger is $4, the equilibrium wage in the fay food labor market is per hour. Suppose that the demand for cheeseburgers increases enough is that the price of a cheeseburger ries to fa. Ordinary, this would result in a new siplibrium employment level and wage in the labor market for young people who work in fast food reviauranis. However, restaurants claim they can only afford to pay the initial ppalibrium maps, In this labor market, if the price of cheeseburgers incenses, but restaurants continue to pay the equiileum wage that prevailed before the marease in demand for cheeseburgers, there will be a laborHW 1 (1) - Word (Product Activation Failed) SERT DESIGN PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW 1. Towards the end of the 20th century, the U.S. government wanted to save money by closing a small portion of its domestic military installations. While many people agreed that saving money was a desirable goal, people in areas potentially affected by a closing soon reacted negatively. Congress finally selected a panel whose task was to develop a list of installations to close, with the legislation specifying that Congress could not alter the list. Since the goal was to save money, why was this problem so hard to solve? 2. Your car gets 29 miles per gallon (mpg) at 60 miles per hour (mph) and 25 mpg a 70 mph. At what speed should you make a 525-mile trip: a. If gas costs $3 per gallon and your time is worth $18 per hour b. If gas costs $4 per gallon and your time is worth $12 per hour c. If gas costs $5 per gallon and your time is worth $9 per hour 3. A firm is planning to manufacture a new product. As the selling price is increased, the quantity that can be sold decreases. Numerically the sales department estimates: P =$475-0.250 Where P = selling price per unit and Q = quantity sold On the other hand, management estimates that the average unit cost of manufacturing and selling the product will decrease as the quantity sold increases, They estimate C = $480 + $22,500 Where C = cost to produce and sell Q per year The firm's management wishes to maximize profit. What quantity should be sold? How much profit will be made? ENGLISH (CANADA)Homework: Factor Markets: With Emphasis on the Labor Market (Ch 13) 9. How price changes impact the labor market Consider the labor market for the fast-food industry, which consists mainly of high school and college students. Assume that all fast-food restaurants are profit maximizing. The following calculator shows the market demand curve (blue curve) and market supply curve (orange curve) for student workers, who are responsible for making cheeseburgers. At any time in this problem, you can click the Reset to Initial Values button to return the elements in the calculator to their original positions. You will not be graded on any changes to the calculator; it's just here to help you answer the following questions. Tool tip: You can directly change the values in the boxes with the white background by clicking in the box and typing. The graph and any related values will change accordingly. Graph Input Tool (?) LABOR MARKET CALCULATOR Wage rate 14 Labor demanded Labor supplied Thousands of Thousand's of 70 workers) workers WAGE RATE Price of a cheeseburger 0 10 2 040 50 60 70 10 90 QUANTITY OF LABOR (Thousands of workers) When the price of a cheeseburger is $4, the equilibrium wage in the fast-food labor market is $ per hour. Suppose that the demand for cheeseburgers increases enough so that the price of a cheeseburger rises to $8. Ordinarily, this would result in a new equilibrium employment level and wage in the labor market for young people who work in fast food restaurants. However, restaurants claim they can only afford to pay the initial equilibrium wage. In this labor market, If the price of cheeseburgers increases, but restaurants continue to pay the equilibrium wage that prevailed before the increase in demand for cheeseburgers, there will be a labor Z of workers.2. A transportation service provider wants to select a telematics device to track the movement of its fleet of trucks. The device is attached to a truck and transmits location and speed of the truck for operational planning purposes. The characteristics of the device that are relevant for selection are location accuracy, speed accuracy, device battery life and cost of device. The transportation company will select a device from three options A, B and C. The following matrix provides the estimation of relative importance of the criteria. Location Accuracy Speed Accuracy Battery Life Cost of Device Location Accuracy 1.00 4.00 2.00 3.00 Speed Accuracy 0.25 1.00 0.50 0.75 Battery Life 0.50 2.00 1.00 1.50 Cost of Device 0.33 1.33 0.67 1.00 The following matrices provide the relative favorability of the devices with respect to the criteria. Location Accuracy: Device A Device B Device C Device A 1.00 1.50 2.00 Device B 0.67 1.00 1.25 Device C 0.50 0.80 1.00 Speed Accuracy: Device A Device B Device C Device A 1.00 0.67 2.00 HW1 ISE 105 Spring 2019 Device B 1.50 1.00 2.00 Device C 0.50 0.50 1.00 Battery Life: Device A Device B Device C Device A 1.00 1.50 0.50 Device B 0.67 1.00 0.33 Device C 2.00 3.00 1.00 Cost of Device: Device A Device B Device C Device A 1.00 1.80 2.00 Device B 0.55 1.00 1.25 Device C 0.50 0.80 1.00 Select the best device using the Analytic Hierarchy Process. [50 points]
