Question
The demand for labor in Occupation A is LD = 20 - W , where LD = number of workers demanded for that occupation, in
The demand for labor in Occupation A isLD= 20 -W, whereLD= number of workers demanded for that occupation, in thousands. The supply of labor for Occupation A isLA= -7 + .8W. For Occupation B, the demand for labor is similar, but the supply of labor isLB= -1 + .5W, which is indicative of a more pleasant environment associated with that occupation in comparison with Occupation A. What is the compensating wage differential between the two occupations? Show your work.
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
