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Assume the demand for highway workers in Alabama equals 100,000 - .5W, where W is the annual wage.Assume the supply of these workers equals -20,000
Assume the demand for highway workers in Alabama equals 100,000 - .5W, where W is the annual wage.Assume the supply of these workers equals -20,000 + 3.5W.Solve for the following:
1. Equilibrium annual wage rate.
2. Equilibrium level of employment
3. The wage elasticity of demand at the market equilibrium.
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