Question: Suppose the demand function for carpenters is Q = 100 - w, and the supply curve is Q = 10 + 2w - T, where

Suppose the demand function for carpenters is Q = 100 - w, and the supply curve is Q = 10 + 2w - T, where Q is the number of carpenters, w is the wage, and T is the test score required to pass the licensing exam. By how much do the equilibrium quantity and wage vary as T increases?

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The equilibrium wage is that wage where demand equals supply 100 w 10 2 w T 90 T 3 w w 30 033... View full answer

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