Assume that the labor demand equation for a fictional country is: Ld=90-1w, where wis the wage per hour worked and Ld is the number of workers demanded by firms. Assume also that the labor supply equation for that country is: Ls = 0.2(w), where L's is the number of people willing to work. Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ and the equilibrium quantity of labor employed is workers. people are unemployed. b. At the equilibrium wage, c. If the supply of workers increased, the number of unemployed would: O increase. O decrease. O stay the same as long as the wage is free to quickly adjust. Next
Assume that the labor demand equation for a fictional country is: Ld=90-1w, where wis the wage per hour worked and Ld is the number of workers demanded by firms. Assume also that the labor supply equation for that country is: Ls = 0.2(w), where L's is the number of people willing to work. Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ and the equilibrium quantity of labor employed is workers. people are unemployed. b. At the equilibrium wage, c. If the supply of workers increased, the number of unemployed would: O increase. O decrease. O stay the same as long as the wage is free to quickly adjust. Next
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Assume that the labor demand equation for a fictional country is:
Ld=90-1w,
where wis the wage per hour worked and Ld is the number of workers demanded by firms. Assume also that the labor supply
equation for that country is:
Ls = 0.2(w),
where L's is the number of people willing to work.
Instructions: Round your answers to the nearest whole number.
a. The equilibrium wage is $
and the equilibrium quantity of labor employed is
workers.
people are unemployed.
b. At the equilibrium wage,
c. If the supply of workers increased, the number of unemployed would:
O increase.
O decrease.
O stay the same as long as the wage is free to quickly adjust.
Next
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