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increased. Question 16 0.45 pts Suppose you have estimated the supply curve for the local labor market as Q3 = We 5, where W is
increased. Question 16 0.45 pts Suppose you have estimated the supply curve for the local labor market as Q3 = We 5, where W is the hourly wage, and Q5 is the quantity of workers willing to work at each wage. You have estimated the demand curve for the local labor market as Qd, = 25 7 W, where Wis the hourly wage, and Qd is the quantity of workers demanded by employers at each wage. a. Solve for the equilibrium wage and quantity of labor. b. If the government imposes a minimum wage of $18, what is the size of the labor force, how many workers are unemployed (assuming all workers without a job are searching), and what is the unemployment rate? Question 17 0.45 pts
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