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In a labor market, the labor is supplied by households and demanded by firms. Suppose that demand and supply curves of labor over the period
In a labor market, the labor is supplied by households and demanded by firms. Suppose that demand and supply curves of labor over the period of one week are given by Qd = 29 - 2W and Qs = 2W - 5, where Q is in the unit of million hours and W is a wage rate per hour, expressed in dollars. Suppose that the government imposes a minimum wage of $9. How many people are unemployed among the people who desire to work? Use 40 hours as a full-time-equivalent (FTE), to convert excess supply of labor expressed in hours to the number of unemployed people.
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