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Economics Homework Twelve - Model (view source)
Revision as of 03:33, December 15, 2009
, 03:33, December 15, 2009improved third answer
:If the item is elastic so will be the demand for labor. (Aran)
:If the item is elastic so will be the demand for labor. (Aran)
:This is a tricky question, and it helps to consider the extreme case to get the right answer. If the good produced by the firm is ''highly'' price elastic, then a small increase in price causes a large decrease in output. A big decrease in output means there is a big decrease in need for workers to produce that output. So the demand for labor is highly elastic also. (Instructor)
4. Do you think that government policy should give high priority to the Lorenz curve? Explain the issue that a Lorenz curve addresses, and whether you think that should be a high priority of government economic policy.
4. Do you think that government policy should give high priority to the Lorenz curve? Explain the issue that a Lorenz curve addresses, and whether you think that should be a high priority of government economic policy.