What is likely to happen to the equilibrium wage and quantity of radiologists following these two events? The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate . higher wages that compensate workers for unpleasant aspects of a job.
What happens to the equilibrium wage and quantity of labor if output price rises?
The demand for labor will increase and the equilibrium wage and quantity of labor will increase. ... What happens to the equilibrium wage and quantity of labor if output price rises? The equilibrium wage and the equilibrium quantity of labor rise.
What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events quizlet?
What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events? The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate . Higher wages that compensate workers for unpleasant aspects of a job.
What is the impact of higher wages on labor supply according to the income effect quizlet?
As the wage rises, the quantity of labor supplied may eventually decline; the income effect of a higher wage increases the demand for leisure , which reduces the quantity of labor supplied enough to more than offset the substitution effect of a higher wage.
What happens as a firm increases the number of workers that it hires a both the marginal product of labor and the marginal revenue product of labor decrease b the marginal product of labor increases and the marginal revenue product of labor decreases C the marginal product of labor decreases and the marginal revenue?
What is the difference between the marginal product of labor and the marginal revenue product of labor? What happens when a firm increases the number of workers that it hires? Let MRP equal the marginal revenue product of labor and W equal the wage rate.
Which of the following is the most likely outcome of minimum wage laws?
Which of the following is the most likely outcome of minimum wage laws? workers have the incentive to work harder, thus increasing their marginal productivity .
Which factor will not shift the labor supply curve?
quantity demanded of labor decreases, but the demand for labor curve does not shift. A shift in demand for a given factor of production will NOT occur if: the price of that factor falls.
What are 5 factors that affect the labor market?
The five factors that affect the labor market are: social change, population shifts, world events, government actions, and the economy .
What causes equilibrium wage to increase?
Just as in any market, the price of labor, the wage rate, is determined by the intersection of supply and demand. When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises.
What are the factors affecting the wage rate?
1. Demand and Supply of Labor : Demand and supply is one of the important factors which influence the wage rates. If the number of workers required is more than availability of workers, then employees will be paid higher rate of work and vice versa.
What causes the labor supply curve sometimes to bend backward at higher wages?
The key to the tradeoff is a comparison between the wage received from each hour of working and the amount of satisfaction generated by the use of unpaid time. ... However, the backward-bending labour supply curve occurs when an even higher wage actually entices people to work less and consume more leisure or unpaid time.
Which of the following factors shifts the labor supply curve?
The supply curve for labor will shift as a result of a change in worker preferences , a change in nonlabor income, a change in the prices of related goods and services, a change in population, or a change in expectations.
What is the impact of higher wages on labor supply according to the income effect?
An increased wage means a higher income, and since leisure is a normal good, the quantity of leisure demanded will go up. And that means a reduction in the quantity of labor supplied. For labor supply problems, then, the substitution effect is always positive; a higher wage induces a greater quantity of labor supplied .
What happens when demand for cheap labor increases?
If the wage rate increases, employers will want to hire fewer employees . The quantity of labor demanded will decrease, and there will be a movement upward along the demand curve. If the wages and salaries decrease, employers are more likely to hire a greater number of workers.
What is supply and demand for Labour?
The demand for labor is an economics principle derived from the demand for a firm’s output. ... Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages . Businesses demanding labor from workers will pay for their time and skills.
Why do economists say labor is a derived demand?
When economists say that the demand for labor is a derived demand, they mean that it is: related to the demand for the product or service labor is producing . ... an increase in the price of one will increase the demand for the other.
