Determine the industry equilibrium price combination

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Demand and supply conditions in the perfect competitive market for unskilled labor are as follows;
Qd = 120 - 20P (Demand)
Qs = 10P (Supply)
Where Q is millions of hours of unskilled labor, and P is the wage rate per hour.
h. Graph the industry demand and supply curves
i. Determine the industry equilibrium price/output combination both graphically and algebraically.
j. Calculate the level of excess supply (unemployment) if the minimum wage is set at $4.50 per hour.

Reference no: EM1368893

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