Question: 3. Determine the equilibrium wage using the total demand and supply curves; then determine employment in the two sectors. Workers shift between sectors until the

3. Determine the equilibrium wage using the total demand and supply curves;

then determine employment in the two sectors. Workers shift between sectors until the new wage is equal in both sectors at w2, which is determined by the intersection of the new total demand curve, D2, and the total supply curve, S.

Employment in the two sectors is Lc 2 and Lu2

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