Explain How Each of the Following Events Affects the Equilibrium

question 36

Essay

Explain how each of the following events affects the equilibrium wage and the equilibrium quantity of labor (assume all else is constant with each event). Be sure to explain whether demand for or supply of labor has changed.
(1) The price of output a firm produces rises.
(2) A leisure-hour provides greater marginal benefit.
(3) The marginal income tax rate rises.
(4) New immigration laws restrict the hiring of illegal workers.
(5) A reduction in welfare benefits.
(6) The cost of machines falls (labor and machines are substitutes).
(7) Technology makes labor more productive.
(8) The industry becomes more monopolistic.
(9) The price of the product a firm produced falls.

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Definitions:

Procedural Unconscionability

Unconscionability that derives from the process of making a contract.

Legalese

The formal and technical language of legal documents that is often difficult for laymen to understand.

Intoxication

A condition resulting from the excessive consumption of alcohol or drugs, impairing a person's cognitive and physical capacities.

Disaffirmed

The act of denying or rejecting a previously accepted contract or agreement, particularly by someone not legally bound by it.