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Consider the labor market for truck drivers where the supply and demand are given by the functions: P=80+4Q and P=240-4Q a) Calculate the equilibrium quantity
Consider the labor market for truck drivers where the supply and demand are given by the functions: P=80+4Q and P=240-4Q a) Calculate the equilibrium quantity (employment level) and the equilibrium price (wage). The equilibrium employment level is The equilibrium wage is Now, assume that the government introduces a minimum wage = 200 b) Calculate the new employment level. c) Calculate the excess supply in the economy. d) Calculate the worker surplus in the economy
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