Labour demand: P = 21 - 0.25QD

Labour supply: P = 8 + 0.10QS

1. Using the formulas find the equilibrium quantity of hours of labour hired each week, remember these are thousands of hours per week.
2. Using the formulas find the equilibrium price which is a wage rate per hour of labour.
3. What is the total income earned per week by the workers in this sector?
4. What is the dollar value of the consumer surplus - firms are the consumers of labour?
5. What is the dollar value of the producer surplus - workers are the producers of labour hours?
6. A minimum wage is set at $14.00, what is the quantity of labour hours hired?
7. What is the total income per week earned by the workers in this sector under the minimum wage?
8. How many hours of labour were attracted to the market by the higher minimum wage?
9. How many hours of labour formerly employed were lost because of the minimum wage being implemented?
10. What is the deadweight loss because of the $14.00 minimum wage policy?
11. True or False and Explain your answer: Please read over the following statement, then decide if it is true or false. Once you have decided if it is true or false, provide an explanation of your reasoning.

"The tariff India places on Canadian lentils helps, Indian farmers receive a higher price for their lentils and the Indian society is better".