Exercise 3.4 The following table describes the demand and supply conditions for labour. Price (5) wage...

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Exercise 3.4 The following table describes the demand and supply conditions for labour. Price (5) wage rate 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity demanded 1020 960 900 840 780 720 660 600 540 480 420 360 300 240 180 120 60 0 Quantity 000000 30 60 90 120 150 180 210 240 270 300 330 360 (a) Graph the functions and find the equilibrium price and quantity by equating demand and supply. (b) Suppose a price ceiling is established by the government at a price of $120. This price is below the equilibrium price that you have obtained in part (a). Calculate the amount that would be demanded and supplied and then calculate the excess demand. Exercise 3.4 The following table describes the demand and supply conditions for labour. Price (5) wage rate 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Quantity demanded 1020 960 900 840 780 720 660 600 540 480 420 360 300 240 180 120 60 0 Quantity 000000 30 60 90 120 150 180 210 240 270 300 330 360 (a) Graph the functions and find the equilibrium price and quantity by equating demand and supply. (b) Suppose a price ceiling is established by the government at a price of $120. This price is below the equilibrium price that you have obtained in part (a). Calculate the amount that would be demanded and supplied and then calculate the excess demand.

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The detailed answer for the above question is provided below a To graph the demand and supply functions we can plot the wage rate on the vertical axis ... View the full answer