Economics > QUESTIONS & ANSWERS > Kapan University_ MT445_Managerial Economics. Unit 3 Assignment. Q&A (All)

Kapan University_ MT445_Managerial Economics. Unit 3 Assignment. Q&A

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1. Is the price elasticity of demand for gasoline more elastic over a shorter or a longer period of time? Explain. 2. Is the price elasticity of supply, in general, more elastic over a shorter or a l... onger period of time? Explain. 3. Why is the supply curve for labor usually upward sloping? 4. In the graph below, assume that the market demand curve for labor is initially D1. Answer the following questions. a. What are the equilibrium wage rate and employment level? B=Equilibrium wage rate. F=Employment level. b. Assume that the price of a substitute resource decreases, other things constant. What happens to demand for labor? If the substitute decreases, the demand for labor would also decrease What are the new equilibrium wage rate and employment level? T=New equilibrium wage rate E=Employment level c. Suppose instead that demand for the final product increases, other things constant. Using labor demand curve D1 as your starting point, what happens to the demand for labor? d. Assume this industry is dominated by non-union workers. How would the equilibrium wage compare to that earned in a similar industry with similarly skilled union workers? Explain. 3. Use the following data to answer the questions below. Assume a perfectly competitive product market. Directions for Submitting your Assignment Complete your assignment in this Microsoft Word® document and save it as Username-MT445AssignmentUnit#.doc (Example:TAllen-MT445Assignment-Unit3.doc). Submit your file by selecting the Unit 3: Assignment Dropbox by the end of Unit 3. [Show More]

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