Predict salaries and employment opportunities

Assume that the equilibrium work is 100,000 employees and the equilibrium rate of pay is 100 dollars per day. The demand for labor is wage elasticity of -1.0, as well as the wage elasticity of labor supply, is 5.0. Assume that labor demand tends to increase by 18%.

Questions:

1) Calculate the excess demand of labor at the initial wage ($100 a day).

2) Calculate changes in overall employment equilibrium.

3) Evaluate and Calculate the equilibrium adjustment wage.

4) Draw a graph to show the impact on the urban labor markets of an increase in employment demand, such as the equilibrium wage (in section B) and overall employment equilibrium values (in section c).