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Scenario 1: Imagine an economy with only two types of workers, unskilled (u) and skilled (s). The supply curves of these workers are, respectively, LY
Scenario 1: Imagine an economy with only two types of workers, unskilled (u) and skilled (s). The supply curves of these workers are, respectively, LY = 20wu - 10 and LS = 20ws - 60 Initially, labour demand curves are LP = 170 - 10w,, and LP = 164 - 8ws . At equilibrium, what are the wages and quantities of skilled and unskilled workers? . . Unskilled wage, Wix : 6 . Quantity of unskilled labour, Nin : Skilled wage, Wis : . Quantity of skilled labour, Nis : . At equilibrium, what are the inequality measures for this economy? . Mean: 80:20 ratio: . 80:50 ratio: 50:20 ratio
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