Calculate the total gains-surplus in the economy

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The market for semiskilled labor can be represented by the following supply and demand curves: ED = 32000 - 4000w and ES = -8000 + 6000w where E = millions of person hours per year and w = the wage in dollars per hour. a) Calculate the equilibrium price and quantity that would exist under a free market. b) Calculate the total gains (surplus) in this economy

Reference no: EM13213065

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