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During the Civil War, General Ulysses S. Grant inelastically set the Union's demand for soldiers while the supply of soldiers was increasing in the wage
During the Civil War, General Ulysses S. Grant inelastically set the Union's demand for soldiers while the supply of soldiers was increasing in the wage rate per usual. a. Using a supply and demand diagram, show the equilibrium in the market for Union soldiers when the demand for soldiers can be met by the supply of soldiers. Denote the market clearing quantity and wage by Q0 and W0. b. Using another supply and demand diagram, show the same market for soldiers when the wage rate offered by Congress is below the market clearing level. Let W1 denote the wage that Congress offers to soldiers and let Q1 denote the resulting quantity of labor. What economic situation will arise in the market for soldiers in this case? c. Given that the Congress did indeed offer soldiers a wage rate below the market clearing level, why did it need to resort to conscription to meet General Grant's stated demand for soldiers
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