Assume that the labour demand equation for a fictional country is La= 90 - 2(w), where w is the wage per hour worked. Also, assume that the labour supply equation for that country is Ls = 0.5(M. Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ and the equilibrium quantity of labour employed is workers. b. At the equilibrium wage, people are unemployed. c. If the supply of workers increased, the number of unemployed would: O stay the same as long as the wage is free to quickly adjust. O decrease. O increase.
Assume that the labour demand equation for a fictional country is La= 90 - 2(w), where w is the wage per hour worked. Also, assume that the labour supply equation for that country is Ls = 0.5(M. Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ and the equilibrium quantity of labour employed is workers. b. At the equilibrium wage, people are unemployed. c. If the supply of workers increased, the number of unemployed would: O stay the same as long as the wage is free to quickly adjust. O decrease. O increase.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Unemployment
Section20.3: Minimum-wage Laws
Problem 3QQ
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Transcribed Image Text:Assume that the labour demand equation for a fictional country is L = 90 – 2(w), where w is the wage per hour worked. Also, assume that the labour supply equation for that country is Ls = 0.5(w).
Instructions: Round your answers to the nearest whole number.
a. The equilibrium wage is $
, and the equilibrium quantity of labour employed is
workers.
b. At the equilibrium wage, |
people are unemployed.
c. If the supply of workers increased, the number of unemployed would:
O stay the same as long as the wage is free to quickly adjust.
O decrease.
O increase.
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