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 labour (assume all else is constant with each event).Be sure to explain whether demand for or supply of labour has changed.
(1)The price of output a firm produces rises.
(2)A leisure-hour provides greater marginal benefit.
(3)The marginal 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 (labour and machines are substitutes).
(7)Technology makes labour more productive.
(8)The price of the product a firm produced falls.

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Definitions:

Conflicting Claim

A situation where two or more parties assert rights or entitlements that are incompatible with one another.

Instrument

A formal written legal document, such as a contract, will, or deed, that formally records the details of a transaction or agreement.

Forgery

The fraudulent making or altering of a written document with the intention to deceive or defraud.

Loss

Loss refers to the reduction in value of an asset, or a decrease in financial wealth due to expenses exceeding revenues.