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show work. 4. The market for unskilled labor can be represented by the following demand and supply functions: QD = 18 -0.25P Qs = 2P
show work.
4. The market for unskilled labor can be represented by the following demand and supply functions: QD = 18 -0.25P Qs = 2P where Qs is the quantity of workers supplied (in millions). QD is the quantity of workers demanded (in millions) and P is the wage. a. What is the equilibrium wage and quantity of workers in this market? (4 points) b. If employers face social pressure to provide health insurance to their workers, show what happens to the labor market (with a graph) when the cost of the health insurance plan is greater than the benefit to the worker. (4 points) c. If the cost for health insurance is $2 per work hour and the benefit of health insurance to the worker is $1, what is the new level of employment in the market? (4 points)Step by Step Solution
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