Consider the labor market with the following demand and supply, respectively: Qd Qs 2 100+ N...

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Consider the labor market with the following demand and supply, respectively: Qd Qs 2 100+ N P = 2P Where: P represents hourly wage (dollars). In your graph, use the natural slopes for the Demand and Supply. Page 2 . N is the total number of firms demanding labor. Qd and Qs are quantities of labor (in thousands of people). 1. Suppose that N 40. Find the equilibrium and plot the market. 2. If the minimum wage is P = $50, what is the total number of people unemployed? Show in the graph. 3. The government wants to implement a law to allow new firms enter to the market (Remember they demand labor). Write an analysis of how this would result in a decrease in the level of unemployment. 4. After the law, 30 new firms entered the market. Make a numerical analysis and compare it with your previous answer. 5. What is the Economic Surplus and Deadweight Loss (before and after the change of demand)? Consider the labor market with the following demand and supply, respectively: Qd Qs 2 100+ N P = 2P Where: P represents hourly wage (dollars). In your graph, use the natural slopes for the Demand and Supply. Page 2 . N is the total number of firms demanding labor. Qd and Qs are quantities of labor (in thousands of people). 1. Suppose that N 40. Find the equilibrium and plot the market. 2. If the minimum wage is P = $50, what is the total number of people unemployed? Show in the graph. 3. The government wants to implement a law to allow new firms enter to the market (Remember they demand labor). Write an analysis of how this would result in a decrease in the level of unemployment. 4. After the law, 30 new firms entered the market. Make a numerical analysis and compare it with your previous answer. 5. What is the Economic Surplus and Deadweight Loss (before and after the change of demand)?

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To analyze the labor market and address the questions lets proceed step by step Equilibrium and Market Graph Given the demand and supply equations Dem... View the full answer