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Homework for Microeconomics 611 In the Ceres fruit picking (competitive) labor market, demand for workers is Qo = 1000 -10W, and supply is Q -

Homework for Microeconomics 611

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In the Ceres fruit picking (competitive) labor market, demand for workers is Qo = 1000 -10W, and supply is Q - 2,000 + 190W, where Q is the quantity of workers employed and W is the hourly wage. What is the initial equilibrium wage and employment level? Suppose that the government decides that R25 per hour is the minimum wage. How would this new minimum wage alter this market? What would the new employment level be? What would happen to total payments to labour? Would there be any excess supply of labour? If so, how much

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