Consider an Economy Where Population Increases, Which in Turn Causes

question 97

Essay

Consider an economy where population increases, which in turn causes both the demand for goods and services and the supply of labour to increase.
a. In a labour supply and demand diagram, analyze the effects of the increase in population on the equilibrium wage and employment.
b. What happens to wage and unemployment if a minimum-wage law exists?

---

Definitions:

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a company during a specific period.

Ending Inventory

The worth of merchandise available for purchase at the conclusion of a financial period.

Maturing Obligations

Debts or obligations that are due to be paid within the next accounting period.

Liquidity Ratios

Financial metrics used to measure a company's ability to meet its short-term obligations with its current assets.