Problem 5-7

Problem 5: Assume the weekly demand and supply for essential workers in the following areas are as follows. Q is the quantity of workers and W is average weekly wage. Y I n r m nt nt Q"(Y to D)= 25,000 - 15W Q"(S to D)= 250,000 - 11W Q"(Y to 3): 10,000 + 110W Q"(S to S): 18,000 + 225W A. What is the total demand and Supply for the market that encompasses Yolo and Sacramento county? What is the market equilibrium employment and wage? . Graph the market demand and supply curves. Indicate the equilibrium quantity and price derived in part (B) on the graph. D. If the state of California mandated a $2lhr wage increase for essential workers, what would the new equilibrium employment and wage be? Assume a 40hour work week. on Problem 6: Assume the daily supply function for burgers is Qs = 500 +50p - 240pf where pf is the price of flour per pound (used to make burger buns). If the demand for burgers is QD = 425 - 25p. How does the equilibrium quantity change if the price of our goes up by $0.15ilb.? Problem 7: Calculate the elasticity of the following demand functions at p=$2 and Q=10. Does the good have elastic or inelastic demand? A. QD = 2+5*sqrt(p)+(1!4)Y B. Name 2 things that would make demand less elastic. Calculate the elasticity of the following supply functions at p=$3 and Q=100. ls supply elastic or inelastic? C. Qs = 12p"2 What is the cross-price elasticity of demand where Q = quantity of apples, pb = the price of apples and pb = the price of bananas at the point where Q = 5, p = $1 and pb=$0.5? D. QD=23- 5p+4pb E. Based on the elasticity you calculated, are bananas a substitute for apples