What can be the level of employment and level of wage in free market?

What can be the level of employment and level of wage in free market?


its a 9 question assignment. details are given in the attached doc file

  • Draw the supply and demand curves on the same graphic. What does a supply curve show us? What does a demand curve show us? (explain)
  • Find the equilibrium price and its amount in the graphic you’ve drawn. Tell us why this point is a equilibrium point.
  • Assume that authorities fixed the price as $5.00. Tell us what would happen according to your graph.



  • Draw a graphic fort the each situation. Show us the initial equilibrium and its cost and amount. Then, Show us the changes of cost and amount as you shift the supply and/or demand. For each situation, expain the reasons that can cause such changes.


  • Potato market                 P*↑   Q*↑
  • Automobile market         P *↓ Q*↓
  • Greyfruit market             P*↑   Q*↓
  • Computer market           P*↓  Q*↑


  • According to a market research, here are some data for the chocolate product. The equation that shows us the demand curve is 1,600 – 300P,   P and is the amount that is demanded, the equation that shows us the supply curve is = 1400 + 700P, is the amount that is supplied.


What is the equilibrium price? What is the amount of chocolate produced and chocolate consumed?






  • Demand curve fort he salted peanuts is = 20000 – 5 P,   in tons, P is the cost given for per tons. Find the price flexibility for the point of P = $800 .


  • Tell us if these statements are true or false, with a couple of sentences. Please avoid repetitions.


  • The demand curve for “Pepsi” is steeper than the demand curve for “all other soda brands”
  • The (short term) demand curve for “Apple” is steeper than the (long term).
  • If the %10 discount for pencil causes an increase of %1 demand for pencil, then the demand for pencil is elastic.
  • If the demand is perfectly inelastic for the medicine called AZT, the increase fort he cost would increase the total revenue.


  • Jennifer has mild choices. According to this, sort the baskets given in an order of choice. Explain.





  • Some people supports minimum wage implementation. Assume that, the labor demand is . is amount of labor (the number of people in million), and w is the wage (the hourly money given). The demand for labor is


  • What can be the level of employment and level of wage in free market?
  • Assume that the minimum wage is $4 hourly. What could be the condition of employment? Could it cause a rise in unemployment? And how much it could be if it was so.


  • People produce tea in Khazakstan for living. The supply and demand curves are given as (in tons) = 10 – (0.5)P   and


  • Its election time in Khazakstan. Government offers $10 for each ton of tea in order to collect votes. In that case, how much tea should govenment buy?
  • Examine the effects over social welfare. (how wins and who looses?)


  • What is the opportunity cost of completing this homework?