Solve for the equilibrium wage and the quantity of employmen

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Suppose the equations for the demand and supply of labor are given by:

LD= 100 - 2w

LS= 10 + 3w

where w is the real wage and and are the quantity of labor demanded and supplied, respectively.

a. Solve for the equilibrium wage and the quantity of employment and graph your results.

b. Assume that the government imposes a $20 minimum wage. Find the new quantity of labor demanded and supplied.

c. How many people lose their jobs because of the minimum wage? How many workers are now unemployed?

Reference no: EM13323792

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