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Suppose in the entry-level labor market, demand is given by W=26-2L, where W is the wage rate and L is the quantity of labor. Suppose
Suppose in the entry-level labor market, demand is given by W=26-2L, where W is the wage rate and L is the quantity of labor. Suppose labor supply is given by W=2+L. Find the equilibrium for this market. Now Suppose a minimum wage law is passed, requiring that workers be paid at least Wmin=14. What will be the consequences, in terms of employment, unemployment, and displaced workers (those who previously had jobs but now don't).
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