3. Suppose the following equation characterize supply and demand in the labor marketmodel:labor supply: L = 1 + wlabor demand: L = 11 – wEquilibrium occurs at an employment level L* and a wage w* so that the labor market clears.What is the equilibrium value of wage and labor in this model?a) w* = 1/5, L* = 4/5b) w* = 6, L* = 5c) w* = 5, L* = 6d) w* = 6, L* = 6e) Not enough information is given.

Given; Labor Supply; Ls=1+wLabor demand; Ld=11-w

3. Suppose the following equation characterize supply and demand in the labor market model: labor supply: L* = 1+ w labor demand: L = 11 - w Equilibrium occurs at an employment level L* and a wage uw* so that the labor market clears. What is the equilibrium value of wage and labor in this model? a) w 1/5, L' = 4/5 b) w* = 6, L* = 5 c) w* = 5, L = 6 d) w = 6, L* = 6 e) Not enough information is given.

3. Suppose the following equation characterize supply and demand in the labor market model: labor supply: L* = 1+ w labor demand: L = 11 - w Equilibrium occurs at an employment level L* and a wage uw* so that the labor market clears. What is the equilibrium value of wage and labor in this model? a) w 1/5, L' = 4/5 b) w* = 6, L* = 5 c) w* = 5, L = 6 d) w = 6, L* = 6 e) Not enough information is given.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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