4 The table gives the demand for and supply of secondary school leavers in a UK town....

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4 The table gives the demand for and supply of secondary school leavers in a UK town. Wage rate Quantity Quantity (pounds demanded supplied per hour) (hours per month) 6 9,000 4,000 7 8,000 5,000 8 7,000 6,000 9 6,000 7,000 10 5,000 8,000 a What are the equilibrium wage rate and level of employment? b What is the level of unemployment? c If a minimum wage is set at £7 an hour, how many hours do secondary school leavers work? d If a minimum wage is set at £7 an hour, how many hours of labour are unemployed? e If a minimum wage is set at £9 an hour, how many hours of their labour are employed and unemployed? f If the minimum wage is £9 an hour and demand increases by 500 hours a month, what is the wage rate paid to secondary school leavers and how many hours of their labour are unemployed?

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Economics

ISBN: 9781509540235

6th Edition

Authors: Michael Parkin, Melanie Powell, Kent Matthews

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