LaborSupplyandDemandGraph

a)Drawthefollowinglaborsupplyanddemandcurvesinone graph.Labeleachaxis,eachcurve,theequilibriumlaborhoursemployed (h),andtheequilibriumwagerate(w).

LaborDemandCurve:

h =41/2w

LaborSupplyCurve:

h =1+1/2w

b)Calculatetheequilibriumwage rate(w)andtheequilibrium numberoflaborhoursemployed(h)inthismarket.

c)Inyourgraph,drawaminimumwageatwl=$7.Inthe graph,indicatethenewequilibriumnumberoflaborhoursemployed(hl).

d)Undertheminimumwageofwl =$7,calculatethe new equilibriumamount oflaboremployed(hl)andthenewequilibriumwage rate (wl).