The equilibrium wage falls and the equilibrium quantity of labor rises
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
NO. The labor productivity will rise together with total output. Vice versa
Change in Quantity/ Change in Units of Labor.
change in output/change in labor.
The change in output that results from employing an added unit of labor (hiring 1 extra person).
Show what Diagrams to illustrate and explain the impact on the equilibrium wage rate and quantity of labour supplied in the labour markert more workers enter the labour marker?
quantity of labor demand goes down
Unions may affect the natural rate of unemployment via the effect on insiders and outsiders. Because unions raise the wage above the equilibrium level, the quantity of labor demanded declines while the quantity supplied of labor rises, so there is unemployment.
NO. The labor productivity will rise together with total output. Vice versa
Change in Quantity/ Change in Units of Labor.
change in output/change in labor.
The change in output that results from employing an added unit of labor (hiring 1 extra person).
When the market price of a good or service rises above equilibrium on its own, the number of buyers exhibiting demand for it is reduced. The only thing left for the maker of such a good or service to do is to drop the price to restore the level of demand necessary to make an optimal profit. This sounds contrary to simple arithmetic, but the fact is that the equilibrium is the price at which consumers get the best deal and suppliers earn the most profit. The effect of price controls is a common example of when a price is held artificially above equilibrium price. Equilibrium is established in a free market where the quantity of a good or service supplied is equal to the quantity demanded. So when government steps in and imposes a price floor on a good or service (such as milk or even labor i.e. minimum wage), everything is fine unless the forces of supply and demand cause the equilibrium to fall beneath that price floor. In the case of labor, minimum wage can cause a labor surplus (commonly and fallaciously referred to as a job shortage). Essentially the price of labor is held artificially high so employers are forced to seek alternatives such as hiring fewer people to do the same job. If the price of milk is set above equilibrium by legislation (perhaps as an earmark to support small agriculture) then the natural effect is for there to be a surplus. Long story short, a lot of milk spoils on the shelves at the grocery store.
Total product refers to the overall quantity of output produced by all units of a factor of production (such as labor or capital) over a specific period of time. It measures the total output generated by a given level of input.
Initially, the MPL and APL fall since there can be no jump in the level of capital used by these workers, and thus output put worker is less than before. However, as time goes on, actual invesmtent exceeds break-even investment and the level of capital increases until the old equilibrium value of capital per worker is reached. At this point, after convergence or time, the MPL and APL are restored to their original values (ceteris paribus).
When real wages increase then the demand for labor slows. Employers must maintain their budgets, so they will not employ more people than their budgets can stand.
increasing the supply of labor