Q1. Referring to the output and substitution effects, explain why an increase in the wage rate for autoworkers will generate more of a negative employment response in the long run than in the short run. Suppose there are no productivity raise and no change in the price of non-labor resources.
Q2. Price (Pg): $10100 (tuition)
Quantity: 27868 (enrollment)
ε = -0.5 for price elasticity of demand
η = 2.0 for price elasticity of supply
if we increase price by 5% how much it will effect Q?
Q3. Explain the difference between macroeconomics and microeconomics.