Y6

Imagine a labor market where the demand for Labor is determined by the equation W = 30- 3Ld and the supply is represented by the equation W = 2Ls +5. In the equations, W is Wage, Ld is the quantity of Labor demanded, and Ls is the quantity of Labor supplied. A. Who are the consumers and who the producers in this market? (2 points) B. Find the W, Ls, and Ld at equilibrium. (3 points) (Be sure to snow your work!)Suppose the government decides to set a minimum wage of $18 per hour for the labor market in the question above. A. What is the new quantity of Labor demanded? (1 point) B. What is the new quantity of Labor supplied? (1 point) C. What is the resulting amount of unemployment? (1 point) D. What else can we call unemployment in a labor market? (2 points) Be sure to show your work