Price-setting and also the rate-means real salary: A numerical analogy

Consult is actually flexible should this be higher than 1, and inelastic in the event that less than step 1

  • If for example the benefit is on this new wage-means contour, workers would not shirk: At this rate out of unemployment, this is the real wage from which pros deliver adequate effort and you may manufacturing may seem.
  • Whether your benefit is on the cost-mode bend, then offered the will cost you as well as the markup, agencies try means the cash-improving speed: The result of you to definitely choice is a real wage revealed because of the the purchase price-mode contour. Sigue leyendo