Question
Consider the market for parking lot attendants in Detroit.The supply and demand equations are as follows (this is a labor market! L is quantity of
Consider the market for parking lot attendants in Detroit.The supply and demand equations are as follows (this is a labor market! L is quantity of labor, w (wage) is price of labor):
Ld = 260- 20*wLs = -60 + 60*w
a.Solve for the equilibrium price and quantity in this market
b.Detroit proposes a minimum wage of $6. At that price, what are the quantity supplied and demanded of parking lot attendants?
c.If the price of this type of labor can not fall below $6, will the market clear?Explain.Is there an excess supply or excess demand in this market, and how does that impact people who want to work?
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Managerial economics applications strategy and tactics
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
12th Edition
9781133008071, 1439079234, 1133008070, 978-1439079232
