The Graph Below Display The Hourly Market For Carpenters In Denver Weg Carpenters Per Hour SU 20 10 16 14 12 10 Demand 8 4 2 (B) Suppose The Hourly Wage Is $11 Per Carpenter. In- Dicate The Magnitude Of The Shortage Or Surplus In The Graph. There's A Shortage Surplus Of Car Peuters Per Hour. (C) Place A Point At The Equilibrium Wage And Em-

 

Problem 9.5 The graph below displays the hourly market for carpenters in Denver. 20 18 16 14 12 10 8 6 4 2 Supply Domand 7 8 9 10 11 Labor ths carpentershou (a) Suppose the hourly wage is $17 per carpenter. In- dicate the magnitude of the shortage or surplus in the graph. There's a shortage surplus of carpenters per hour. (b) Suppose the hourly wage is $11 per carpenter. In- dicate the magnitude of the shortage or surplus surplus of in the graph. There's a shortage carpenters per hour. (c) Place a point at the equilibrium wage and em- ployment of carpenters in the graph, and label the point with an E. Circle the equilibrium num- ber of carpenters on the horizontal axis. Circle or write the equilibrium wage on the vertical axis. (d) In the market-clearing equilibrium, the value of the marginal product of carpenters is S which is less than equal to greater than the wage. Problem 9.6. The graph below displays the hourly market for carpenters in Denver. Supply wage (Sworker) 20 18 16 14 12 10 8 6 4 2 01 2 3 4 567 8 9 10 11 Labor (ths carpenters/hour) Demand (a) The demand for housing in Denver increases. Il- lustrate the effect on the market for carpenters. (Use one of the light-gray lines as a guide.) (b) The increase in Denver's housing demand increases decreases doesn't affect the wage of carpenters and increases decreases doesn't affect the number of people employed as carpenters. Problem 9.7. The graph below displays the hourly market for carpenters in Denver. wage (Sworker) 20 18 16 14 12 10 8 6 4 2 01 2 3 4 56 7 Supply Demand 8 9 10 11 Labor (ths carpenters/hour) (a) The wage of carpenters in Dallas plummets. In fact, carpenters in Dallas now earn $10 per hour. Illustrate the effect on the market for carpenters in Denver. (Use one of the light-gray lines as a guide.) (b) The fall in the wage of Dallas carpen- ters increases decreases doesn't affect the wage of Denver carpenters and increases decreases doesn't affect the num- ber of people employed as carpenters in Denver.