Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 6 The Economics of Labor Markets
Chapter 18 of 36 The Markets for the Factors of Production
Section 15 of 20
…
Figure 5 - A Shift in Labor Supply
With an increase of labor supply
· labor supply curve moves from S1 to S2
· the equilibrium wage falls from $500 to $380
At this lower wage firms hire more labor.
Employment quantity rises from 3 to 4.
…
Per Table 1C the apple orchard
· employment rises from 3 to 4 workers
· output rises from 240 to 280 bushels
· total wages paid rises from 3 x $500 = $1500 to 4 x $380 = $1520
· profit rises from $1260 to $1280
…
In sum, the larger supply of labor drives down the cost of labor making it profitable to produce (gather) a larger quantity of apples.
In this case each worker makes less ($500->$380) but total wages paid increases ($1500->$1520).
… …
in sum
yō suru ni
要するに

Comments

Post a Comment

Popular posts from this blog

HAT Manifesto Part 1/3 - Rubric Cube - 250803 edit

Image
  “The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds.” - William James “All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.” - Thomas Jefferson “Wherever good fortune enters, envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind.” - Leonardo da Vinci “Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their talents wou...
Read more
  From article What 10 Years of U.S. Meddling in Ukraine Have Wrought (Spoiler alert: Not democracy). Aaron Mate. April 30, 2024. Section 2. Seeking to capitalize on the unrest in Ukraine in 2013, U.S. figures including State Department official Victoria Nuland, Republican Sen. John McCain, and Democratic Sen. Chris Murphy visited Maidan Square. In a show of support for the movement’s hardline faction, which went beyond supporting the EU trade deal to demand Yanukovych’s ouster, the trio met privately with Tyahnybok and appeared with him on stage. The senators’ mission, Murphy said, was to “bring about a peaceful transition in ukraine.” … The Maidan Movement’s most significant U.S. endorsement came from then-Vice President Joe Biden. “Nothing would have greater impact for securing our interests and the world’s interests in Europe than to see a democratic, prosperous, and independent Ukraine in the region,” Biden said. According to Andrii Telizhenko, a former Ukrainian...
Read more
Image
  Review of book Unhumans: The Secret History of Communist Revolutions (and How to Crush Them). Jack Posobiec. 2024. Kindle online sample. Section 1. From book introduction: The old rules are over. The old order is over. Accusations are evidence. Activism means bigotry and hate. Criminals are allowed to roam free. Citizens are locked up. An appetite for vengeance is unleashed—to deplatform, debank, destroy. This is the daily news, yet none of it’s new. Patterns from the past make sense of our present. They also FORETELL A TERRIFYING FUTURE WE MIGHT BE CONDEMNED TO ENDURE. … For nearly 250 years, far-left uprisings have followed the same battle plans -from the first call for change to last innocent executed -from denial a revolution is even happening to declaration of the new order Unhumans takes readers on a shocking, sweeping, and succinct journey through history to share THE UNTOLD STORIES OF RADICAL TAKEOVERS textbooks don’t teach. … And there is one conclusion: We're in a new...
Read more