Find the equilibrium real wage

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Unemployment: Suppose that there are 500 workers in the economy and the labor demand function is given by: LD = 1000 − 10 W P (a) Find the equilibrium real wage. (b) Suppose that Congress institutes a minimum real wage of $40 per hour. Find the level of unemployment and the real wage that will exist in this market. (c) Suppose that Congress institutes a minimum real wage of $60 per hour. Find the level of unemployment and the real wage that will exist in this market.

Reference no: EM131091411

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