Suppose we are in the labor market. The current demand and supply equations are:

Q^D = 300 - 20W, where Q^D is the labor demand by firms and W is the wage rate.

Q^S = 10W, where Q^S is the labor supply by households and W is the wage rate.

(a) Calculate the equilibrium level of wages W* and quantity of labor employment L* (or Q*) in this economy. Show your work. (2 points)

(b) Suppose the government imposes a minimum wage of $12. Is this binding? Does market clear after imposition of the minimum wage? Or, do you detect any unemployment. Show your work and explain your answer. (4 points)

(c) Suppose firms union pressurizes the government to set a maximum wage level of $12. What is the impact on the labor market, if at all, after this maximum wage level is set? Show your work, if needed, and explain your answer. (4 points)