The following table includes information on the labor market for bakers.
a.What is the equilibrium wage and quantity of bakers in this market?
b.With the invention of instant teleportation, baker positions can be outsourced to countries with cheaper labor without sacrificing freshly baked goods.This reduces the labor demand for bakers by four-fifths.What is the new equilibrium wage and quantity of bakers hired?
c.Who wins in this situation in the short run? Who loses? What needs to happen in the long run so that the economic losers can benefit from outsourcing?
Definitions:
Concentration Gradient
A variation in the concentration of a substance across a distance; a key factor in diffusion processes.
Loop Of Henle
A section of the nephron in the kidney that concentrates urine and reabsorbs water and ions.
Reabsorption
The process by which the kidneys filter and then absorb back into the blood certain substances or water from the urine.
Tubule
A Tubule is a small tube-like structure in the body or cells that serves various functions, such as transport or absorptive roles.
Q22: With a large group of citizens leaving
Q23: The movie You've Got Mail features a
Q51: Because a firm's demand for a factor
Q56: Suppose 1,000 college students are separated into
Q58: In the short run,wages in the home
Q63: Which of the following is an example
Q66: Between two given years,if real GDP and
Q93: Which position is most easily outsourced?<br>A) a
Q129: The percentage change in any economic variable,including
Q150: Inefficient output and price,few choices,and rent seeking