A firm's labour demand and labour supply equations are shown below.

Labour demand equation:L_d= 40 - 2(w)

Labour supply equation:L_s= 20 + 3(w),

wherewis the wage per hour worked.

Instructions:Round your answers to the nearest whole number.

a. The equilibrium wage is $________, and the equilibrium quantity of labour employed is________people.

b. The workers, thinking that their wages are too low, decide to strike.After tense negotiations, the firm decides to raise the wage by 50 percent.

After the wage increase,________ people are unemployed.