This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What factors shift the demand for labor curve? Briefly describe the effect of each. What will be ... (Read 118 times)

a0266361136

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
What factors shift the demand for labor curve? Briefly describe the effect of each.
 
  What will be an ideal response?

Question 2

Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

missalyssa26

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

Three factors shift the demand for labor curve: the price of the firm's output, the prices of other factors of production, and technology. When the price of the firm's output rises, the firms' demand for labor increases and its demand for labor curve shifts rightward. These changes occur because when the price of output rises, the value of marginal product increases, which means the value to the firm of hiring additional workers rises.
When the prices of other factors of production change, the demand for labor changes. When the price of capital rises, the firm is motivated to use more labor and less capital. The firm's demand for labor increases and the demand for labor curve shifts rightward. When the price of capital falls, more capital is demanded and, unless the fall in the price of capital increases the scale of the firm's operations, less labor is demanded. The demand for labor curve shifts leftward.
Changes in technology affect the demand for labor in a more complex way. Depending on the type of advance in technology, the demand for different types of labor might increase or decrease. If the demand for a type of labor increases, its demand curve shifts rightward; if the demand for another type of labor decreases, its demand curve shifts leftward.

Answer to Question 2

In short, wage differentials will lead to price differentials. The price of the output produced by workers suffering discrimination will be less than the price of output produced by favored workers. If the goods are the same, this price differential cannot persist. An increase in the demand for the good produced by the discriminated-against group will raise the demand for their labor and thereby increase their wage.


a0266361136

  • Hero Member
  • *****
  • Posts: 538
Reply #2 on: Jun 29, 2018
Thank you :)


missalyssa26

  • Sr. Member
  • ****
  • Posts: 327
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Effect of the chemical environment on pKa Effect of the chemical environment on pKa
Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
The Greenhouse Effect The Greenhouse Effect
How much the temperature will rise depends on many factors that affect the level of GHG emission How much the temperature will rise depends on many factors that affect the level of GHG emission
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Genes and Risk Factors for Alzheimer Disease Genes and Risk Factors for Alzheimer Disease
Video: Coronary Heart Disease Animation

For a complete list of videos, visit our video library