08 Jun Question The labor demand and supply cu
Question
The labor demand and supply curves are respectively: Ld = a+b·w and Ls = c+d·w, where a, b, c, and d are parameters of the model, w is the wage, Ld and Ls denote labor demand and supply, respectively.
A. What are the values of the parameters c and d that make the supply curve upward- sloping and passing through the origin in the (L, w) space?
B. What are the values of the parameters a and b that make the demand curve downward- sloping in the (L, w) space?
C.Supposea>0,c=0,andd>0. Whatistheconditionontheparameterbthat guarantees that an equilibrium in the labor market exists?
D. Suppose a = 5, c = 0, b = 1, and d = 2. Calculate equilibrium labor and wage;
E. Suppose the government levies a tax on the labor income earned by the worker. How does the labor demand and/or supply curve change? Write down the new labor demand and/or supply curve as a generic function of the labor income tax, ⌧w;
F. Suppose now that the labor income tax is ⌧w = 0.2. Calculate the new equilibrium labor and wage;
G. Suppose now that the labor income tax is ⌧w = 1. Calculate the new equilibrium labor and wage.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.