For each of the following, determine the impact on the demand or the supply of labor and

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For each of the following, determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed.

a. An increase in the price of capital.

b. A union is formed that uses collective bargaining and the threat of a strike to obtain higher wages for its members.

c. The marginal productivity of workers rises.

d. People desire leisure more than before (e.g., it is Christmas Day).

e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages.

f. The fringe (nonmonetary) benefits offered in this market have increased substantially.

g. The government has just adopted an “open-door” immigration policy?

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Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

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