1. Determine the equilibrium wage and level of employment of taxi drivers in this market. (2)
2. Prove your answers are correct using graphical means. (5)
3. Suppose taxi drivers working in this market form a union which successfully negotiates an increase in the wage to $10 an hour. Show graphically and numerically what the impact of this would be on the employment situation in this market. (5)

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Given the demand and supply schedule provided below, 1. Determine the equilibrium wage and level of employment of taxi drivers in this market. (2) 2. Prove your answers are correct using graphical means. (5) Demand and Supply Schedules for Taxi Drivers Wage ($ Per Hour) Quantity Demanded Quantity Supplied 1 2.00 300 1 000 11 .00 400 900 1 0.00 500 800 9.00 600 700 8.00 700 600 7.00 800 500 6.00 900 400 5.00 1 000 300 3. Suppose taxi drivers working in this market form a union which successfully negotiates an increase in the wage to $10 an hour. Show graphically and numerically what the impact of this would be on the employment situation in this market