The snowboard industry has the following labour supply is ES = 150 + 10w and labour demand is ED = 350 - 10w, where E is the level of employment in 1,000s of workers and w is the hourly wage.

1. If the labour market is competitive, then what is the equilibrium wage and employment? What is the unemployment rate?

2.Let's pretend the government asks you to examine the impact of implementing a minimum hourly wage of $12. What would happen to the employment level? How many additional workers would want a job at the minimum wage? What is the unemployment rate?