Please answer the first 3 questions.
Suppose that labour demand and labour supply are represented by the equations:
Demand: LD = 10 - 0.5W
Supply: LS = 0.5W
a. Find the equilibrium wage and employment levels.
b. Graph the curves and indicate the equilibrium on a graph.
c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market?
d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here