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Kryger [21]
4 years ago
13

Theresa, an HR manager, works for a firm that is planning to expand overseas. Theresa is in the process of workforce planning an

d has already forecasted the firm's labor demand. What should Theresa do next?
Business
1 answer:
podryga [215]4 years ago
5 0

Answer:

Identify labour supply-demand gaps

Explanation:

Theresa as an HR manager must identify the labour supply-demand gaps. She has identified the firm's labour demand, and now the next step should be to identify the supply of labour and then to understand the gap. The labour supply-demand gap will help the HR manager to identify the possible changes which she must do to fulfil the firm's labour demand.

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A firm has estimated the following demand function for its product:
Rom4ik [11]

Answer:

(i) Q=300

(ii) Elasticity of Demand=-3.33 (elastic)

(iii) Income Elasticity= 2.5 (normal good)

(iv) Advertising Elasticity: 1.5

Explanation:

The Demand function is given by

Q=100-5P+5I+15A

(1) To solve (i) we need to replace P = 200, I = 150, and A = 30 in the demand equation:

Q=100-5(200)+5(150)+15(30)=300

(2) To find the price elasticity (how much quantity demanded changes with price) we use the point price elasticity formula

\eta_{Price}=\frac{\Delta Q}{\Delta P}\frac{P}{Q}

From the above equation we get: \frac{\Delta Q}{\Delta P}=-5

Replacing in the elasticity formula

\eta_{Price}=-5\frac{200}{300}=|-3.33|>1

in absolute terms the elasticity is bigger than one so it is an elastic demand.

(3) For income elasticity (how much quantity demanded changes with income), we proceed similarly as above. But the derivative is respect to income

\eta_{Income}=\frac{\Delta Q}{\Delta I}\frac{I}{Q}=5\frac{150}{300}=2.5>1[/tex]

Which is bigger than one, denoting this is a normal good because it's bigger than one.

(4) Advertising elasticity (how much quantity demanded changes with expenditures in advertising), we proceed as before

\eta_{advertising}=\frac{\Delta Q}{\Delta A}\frac{A}{Q}=15\frac{30}{300}=1.5

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Answer:

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