Question: Consider a Kenyan labor market with the following demand and supply functions respectively: Q D = 200 W AND and Q S = 120

Consider a Kenyan labor market with the following demand and supply functions respectively:

Q_D = 200 – W AND and Q_S = 120 + W; 4- in; where Q_D is quantity of labour demanded;

Q_D is quantity of labor supplied and w• is the wage rate is USD in the market.

Required:

Calculate the market equilibrium

Suppose the Kenya government introduces a minimum wage of USD 100 in this market, calculate the unemployment rate caused by the minimum wage in the economy

Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following:

A fall in the price of fish which is a substitute for chicken.[2 marks]

A successful advertising campaign by the government promoting the benefits of eating chicken. [2marks]

An outbreak of bird flu that leads the government to have a large proportion of the country's stock of chickens destroyed. [2 marks]

Step by Step Solution

★★★★★

3.31 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Please ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

636618d71c014_240329.pdf

180 KBs PDF File

636618d71c014_240329.docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Three-Month Project NOTE! Templates needed Ampersand, Inc., is a small business that operates in Somerset, VT The company is located at 732 Appalachian Way, Somerset, VT 05363. Its federal Employer...

Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price and quantity traded of chicken, following: A fall in the price of fish which is a substitute for...

A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also...

Consider the following demand and supply functions for some hypothetical market: Q S = 3 + 2P Q D = 12 P a. Simultaneously solve the equations to find equilibrium price (P E ) and quantity (Q E )....

Arthur started a new business on 1 January 20X9. You are supplied with the following nominal ledger accounts, which have been closed off and a trial balance extracted. These are Arthurs only...

Consider conducting Fisher's exact test with the following fictitious table of data. Let the null hypothesis be that treatment and response are independent, and let the alternative be the directional...

Assuming a lower specification limit of 47 grams and an upper specification limit of 53 grams, what is the process capability of this process? How many defects would you expect in one million bags?...

(a) Consider a uniformly charged thin-walled right circular cylindrical shell having total charge Q, radius R, and height h. Determine the electric field at a point a distance d from the right side...

The direction of any vector A in three-dimensional space can be specified by giving the angles a, , and that the vector makes with the x, y, and z axes, respectively. If A = Axi + Ayj + Azk, (a) Find...

Suppose Harry Davis issues 30-year debt with a par value of $1,000 and a coupon rate of 10%, paid annually. If flotation costs are 2 percent, what is the after-tax cost of debt for the new bond? MINI...

During 2010, Jester Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in...

The answer should be a min of 800 Words in the word format with plagiarism-free. 2. The following infonnation is available from the records of Alpha Ltd. For the year Sales of product A Sales of...

On January 1, 2011, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2011,...

2. It is false that some lunar craters are volcanic formations. Th erefore, no lunar craters are volcanic formations. Use the modern square of opposition to determine whether the following immediate...

In Figure P20.40, the change in internal energy of a gas that is taken from A to C is "800 + J. The work done on the gas along path ABC is - 500 J. (a) How much energy must be added to the system by...

In Figure 2.10b, the area under the velocity versus time curve and between the vertical axis and time t (vertical dashed line) represents the displacement. As shown, this area consists of a rectangle...

In an experimental house, Styrofoam beads were pumped into the air space between the panes of glass in double windows at night in the winter, and pumped out to holding bins during the day. How would...

In describing his upcoming trip to the Moon, and as portrayed in the movie Apollo 13 (Universal, 1995), astronaut Jim Lovell said, Ill be walking in a place where theres a 400-degree difference...

In deep space the number density of particles can be one particle per cubic meter. Using the average temperature of 3.00 K and assuming the particle is H2 with a diameter of 0.200 nm, (a) Determine...

From the information provided on this page, would you say that reptiles are more closely related to mammals or to amphibians? Question 3 options: Reptiles are more closely related to mammals than to...

f) Consider a Kenyan labor market with the following demand and supply functions respectively: = 200 and = 120 + ; where is quantity of labor demanded; is quantity of labor supplied and is the wage...

These are multiple choice questions for economics you have to read and answer them. Question 25 (1 point) (Figure: Market) A quota of 25 units is placed on the market that is shown in the figure. The...

Please read these multiple choice and look if I provided the right answer if not then please provide the right answer thanks. $17,000 $19,000 Question 23 (1 point) . Saved Bae is willing to pay up to...

(Figure: Kenyan Labor Market) The government of Kenya implements a minimum wage of 15,000 Kenyan shillings per month. What occurs in this labor market after implementation of the minimum wage? A...

Consider a low-wage labor market. The current minimum wage is $12 per hour. Employment at this wage is 150,000. There are approximately 25,000 people unemployed in this market. The government is...

ANSWER ALL OF THE QUESTIONS WITH CALCULATIONS AND EXPLAINATION! 1) Vincent is deciding whether to buy a painting. The current sale price of the painting is 100 dollars. The resale price of the...