Suppose that the supply curve for optometrists is given by L s = -6 + 0.6W, while

Question:

Suppose that the supply curve for optometrists is given by L_s = -6 + 0.6W, while the demand curve is given by L_D = 50 - W, where W = annual earnings in thousands of dollars per year and L = thousands of optometrists.

a. Find the equilibrium wage and employment levels.

b. Now, suppose that the demand for optometrists increases and the new demand curve is Assume that this market is subject to cobwebs because it takes about three years to produce people who specialize in optometry. While this adjustment is taking place, the short-run supply of optometrists is fixed. Calculate the wage and employment levels in each of the first three rounds, and find the new long-run equilibrium. Draw a graph to show these events.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 0% (1 review)

Lets solve this step by step Part a Finding the Equilibrium Wage and Employment Levels To find the equilibrium wage we set the supply of optometrists equal to the demand for optometrists and solve for ...View the full answer

Answered By

Asim farooq

I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

4.40+ 65+ Reviews 86+ Question Solved

Related Book For book-img-for-question

Modern Labor Economics Theory And Public Policy

ISBN: 9780132540643

11th Edition

Authors: Ronald Ehrenberg, Robert Smith

See More Books

Question Posted: Feb 10, 2024 07:00 AM

See More Questions

Suppose that the supply curve for optometrists is given by L s = -6 + 0.6W, while

Question:

L = 66 - W.

Step by Step Answer:

Lets solve this step by step Part a Finding the Equilibrium Wage and Employment Levels To find the equilibrium wage we set the supply of optometrists equal to the demand for optometrists and solve for ...View the full answer

Modern Labor Economics Theory And Public Policy

Students also viewed these Business questions