In the United States, demand for long-haul truck drivers has noticeably increased over recent years. According...

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In the United States, demand for long-haul truck drivers has noticeably increased over recent years. According to the Bureau of Labor Statistics (BLS), the job for truck drivers is expected to increase at 6 percent per year up to 2030. Suppose the BLS economists estimated the supply curve for long-haul truck drivers as a function of quantity supplied (Q.) of truckers and nominal wage (W), as Q = 1 + 0.02 * W in 2023. And the demand for truckers is a function of quantity demanded (Q.) and W, as Q₁ = 2.65 -0.01 * W. Here we take Q as the number of jobs (million) and W as the nominal wage rate (as $1000 or K). Tip: you do not need worry about the units of Q and W in this question. You just need to plug in the values of Q and W from the market equilibrium solutions derived. (a) Given the information as above, how much is the market equilibrium wage (as $1000 or K) for tuckers in 2023? And how many jobs available for truck driver in 2023? (b) If the demand for truckers increased to Q₁ = 2.89 -0.01 *W, then how much will be the new equilibrium wage (W) and the number of jobs (0)? In the United States, demand for long-haul truck drivers has noticeably increased over recent years. According to the Bureau of Labor Statistics (BLS), the job for truck drivers is expected to increase at 6 percent per year up to 2030. Suppose the BLS economists estimated the supply curve for long-haul truck drivers as a function of quantity supplied (Q.) of truckers and nominal wage (W), as Q = 1 + 0.02 * W in 2023. And the demand for truckers is a function of quantity demanded (Q.) and W, as Q₁ = 2.65 -0.01 * W. Here we take Q as the number of jobs (million) and W as the nominal wage rate (as $1000 or K). Tip: you do not need worry about the units of Q and W in this question. You just need to plug in the values of Q and W from the market equilibrium solutions derived. (a) Given the information as above, how much is the market equilibrium wage (as $1000 or K) for tuckers in 2023? And how many jobs available for truck driver in 2023? (b) If the demand for truckers increased to Q₁ = 2.89 -0.01 *W, then how much will be the new equilibrium wage (W) and the number of jobs (0)?

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Solving for Market Equilibrium in the Truck Driver Market a Equilibrium in 2023 Set Supply equal ... View the full answer