A suburb of Houston has the following labor supply.demand curves, where W is the hourly wage rate:

LS=20 + 5W

LD= 160 5W

Question A

Calculate the equilibrium level of employment:

Calculate the equilibriumwage: $

What is the size of the labor force in equilibrium:

What is the unemployment rate in equilibrium:%

Question B

The regional news finished a story aboutmigration to the area leadingto an increase in the labor supply curve. Assume now that the new aggregate labor supply curve is LS= -40+5W.

Calculate thenew equilibrium wage: $

Question C

Assume the local labor market isslow to react to the new migrants and, as a result, the wagedoes not adjust to the new equilibrium wage.

What would be the level of employment:

What isthe size of the labor force:

How many workers are unemployed: