Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been contracted by the government of your country to provide recommendations on the regulation of the national textile industry. Currently, the textile industry

You have been contracted by the government of your country to provide recommendations on the regulation of the national textile industry. Currently, the textile industry which resembles features of the perfectly competitive market is completely unregulated. Using the concepts covered in the class, please provide your advice to the problems below.

(ONLY ANSWER THE SECOND QUESTION PLEASE)

1.One of the biggest social problems in the textile industry is child labour which, among other things, reduces school attendance. The government is considering two types of interventions and asked you to explain the process through which each of them affects the equilibrium amount of child labour and wages using words (explain the impact on demand and/or quantity demanded, supply, and/or quantity supplied as appropriate) and include well-labelled graphs.

a. Provide rewards for children who attend school

b. Impose fines on employers who employ children

2.Consider how own price elasticity of labour demand and supply affects the market outcomes for both policies. In addition to writing your answer in words, use well-labelled graphs to support your answer. Please draw new graphs, rather than using those from question 1.

a. How does own price elasticity of demand impact the effects of providing children who attend school with rewards on prices and the amount of child labour?

b. How does the elasticity of supply impact the effectiveness of a fine on the employers who employ children?

ONLY ANSWER THE SECOND QUESTION PLEASE!!!!

I ALREADY FIGURE OUT THE FIRST ONE!!

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

Step: 3

blur-text-image

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

Microeconomics

Authors: Roger A Arnold

13th Edition

1337617407, 9781337617406

More Books

Students also viewed these Economics questions