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A small farming community has the following supply and demand curves, where W is the hourly wage rate. Ls = -40 + 10W LD
A small farming community has the following supply and demand curves, where W is the hourly wage rate. Ls = -40 + 10W LD = 160 - 10W Question A Calculate the equilibrium level of employment: Calculate the equilibrium wage level: $ What is the size of the labor force in equilibrium? Question B Following a national story about the quality of life in the small town, migration shifts out the labor supply curve. The new labor supply curve is Ls=-20 + 10W. Calculate the new equilibrium employment: Question C Calculate the total economic rent for all workers before the news story: Calculate the total economic rent for all workers after the news story:
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Question A To find the equilibrium level of employment we need to set the quantity supplied equal to the quantity demanded Quantity supplied Ls Quanti...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
