Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the labor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for the quantityof labor (measuredthousands of workers) and W stands for the wage rate (measured in dollars per hour):D= 100 - 6WLS = 4W.Demand:Supply:First, calculate the free-market equilibrium wage and quantity of labor.The competitive market equilibrium wage is $ per hour. (Enter your response as an integer.)

Equilibrium is achieved at the level where Ls = Ld in order to attain market clearing level.

Answered: pasured in thousands of workers) and W…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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pasured in thousands of workers) and W stands for the wage rate (measured in dollars per hour): D = 100 - 6W LS = 4W. Demand: Supply: Mate the free-market equilibrium wage and quantity of labor. atitive market equilibrium wage is $ per hour. (Enter your response as an integer.)