Top Posters
Since Sunday
n
3
j
3
x
2
c
2
2
p
2
n
2
3
2
C
2
z
2
k
2
d
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
lindseyw lindseyw
wrote...
Go to Answer
Posts: 140
Rep: 0 0
A year ago

Suppose an island economy has only two labour markets- fishing (high skill) and farming (low skill). There are 1000 males and 1000 females in the labour force. There is an equal distribution of skilled and non-skilled workers among each sex.

Short description: Two graphs titled, fisher's labour market (high skill) and farmer's labour market (low skill). Long description: The first plane representing fisher's labour market (high skill) shows two lines. The horizontal axis representing the number of workers ranges from 600 to 1400. The vertical axis representing wages (dollars per day) ranges from 80 to 120. Line, D passes through the following points: (600, 120), (1000, 100), and (1400, 80).Line, S passes through the following points: (600, 80), (1000, 100), and (1400, 120). Five points are plotted on the plane: A (600, 120), B (1400, 120), C (600, 80), D (1400, 80), and E (1000, 100). The two lines intersect at E. The second plane representing the fisher's labour market (low skill) shows two lines. The horizontal axis representing the number of workers ranges from 600 to 1400. The vertical axis representing wages (dollars per day) ranges from 60 to 100. Line, D passes through the following points: (600, 100), (1000, 80), and (1400, 60). Line, S passes through the following points: (600, 60), (1000, 80), and (1400, 100). Five points are plotted on the plane: A (600, 100), B (1400, 100), C (600, 60), D (1400, 60), and E (1000, 80). The two lines intersect at E.

FIGURE 14-1

Refer to Figure 14-1. Suppose the employers in the fishers labour market begin to discriminate against male workers. Which of the following can we expect to occur in the farmers labour market?



▸ The demand for labour curve shifts to the left until a new equilibrium is reached at point C and the wage falls to $60 per day.

▸ There will be an equal flow of workers between the two markets, equilibrium will remain at point E and the wage at $80 per day.

▸ The labour supply curve shifts to the right until a new equilibrium is reached at point D and the wage falls to $60 per day.

▸ The labour supply curve shifts to the left until a new equilibrium is reached at point A and the wage rises to $100 per day.

▸ The demand for labour curve shifts to the right until a new equilibrium is reached at point B and the wage rises to $100 per day.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 17 times
1 Reply
Replies
Answer verified by a subject expert
hadu582hadu582
wrote...
#1
Posts: 128
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

lindseyw Author
wrote...

A year ago
Thanks for your help!!
prime7105
wrote...

Yesterday
This site is awesome
veronee_madison
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  838 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 206
  
 266
  
 924
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 431
Previous poll results: Do you believe in global warming?