Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Chapter 4, Problem 9DQ
To determine

To analyze the consistency of given data with the two given explanations.

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The demand for skilled workers in the United States has been increasing. To increase the supply of skilled workers, many argue that immigration reform to allow more skilled labor into the United States is needed. Explain whether you agree or disagree.
The current quantity demanded of hairdressers is 47,00047,000, and the average salary in the labor market is $27,000$⁢27,000 per year. Recently, several salons closed due to competition, which led to employers demanding only 36,00036,000 hairdressers.Assuming that when quantity demanded decreases by 1,1001,100 workers, the average salary will decrease by $500$⁢500, calculate the new salary in the labor market. Write the exact answer. Do not round.
Consider an  INCREASE in the wage (as demanded by the labor groups) to a higher level than the equilibrium price for labor. SHOW  geometrically what will happen in the labor market.  What problem(s) is/are likely to arise in the labor market?
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