Government has a competitive labour market for government employees. A hypothetical equations for labour demand and labour supply are as follows:

(QD) =7000 - 5W

(QS) = 625 + 10W

Where:

QD: Quantity Demanded

QS:Quantity Supplied

W: wage per week

a)What is the equilibrium level of employment?

b)Assume all workers agreed to join a union and they successfully obtained a wage increase to $500 per week (the demand curve is not affected). Calculate the number of workers employed after unionization.

c)How many workers are willing to work at this new wage of $500?

d)How many workers are unemployed at this new wage of $500?