In a particular industry, labor supply is ES = 10 + w and labor demand is ED

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In a particular industry, labor supply is ES = 10 + w and labor demand is ED = 40 ( 4w, where E is the level of employment and w is the hourly wage.
(a) What is the equilibrium wage and employment if the labor market is competitive? What is the unemployment rate?
(b) Suppose the government sets a minimum hourly wage of $8. How many workers would lose their jobs? How many additional workers would want a job at the minimum wage? What is the unemployment rate?
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Labor Economics

ISBN: 978-0073523200

6th edition

Authors: George J. Borjas

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