Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand and supply curves for labour are given by Demand: w=22-3LD Supply: w=4+3LS where w is the wage ($ per hour) and L is the number of hours of employment (measured in thousands of hours per month). a. Use the line drawing tool to plot the demand and supply curves in the graph at the right. Use points with labour hours value of 0 and 5 to draw the lines. Label the lines properly. Carefully follow the instructions above, and only draw the required objects. Wage ($ per hour) 24- 22+ 20- 18+ 16- 14- 12+ 10+ 8- 6- 4- 0 Labour Market + D 4 1 2 3 Labour (thousands of hours per month) 5 Q

Economics:
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ISBN:9781285859460
Author:BOYES, William
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Chapter30: The Labor Market
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Problem 14E
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Consider a simple demand-and-supply model of a competitive labour market in a small town. The
demand and supply curves for labour are given by
Demand: w= 22 - 3LD
Supply: w=4+3LS
where w is the wage ($ per hour) and L is the number of hours of employment (measured in thousands
of hours per month).
a. Use the line drawing tool to plot the demand and supply curves in the graph at the right. Use points
with labour hours value of 0 and 5 to draw the lines. Label the lines properly.
Carefully follow the instructions above, and only draw the required objects.
C
Wage ($ per hour)
24-
22-
20-
18-
16-
14-
12-
10-
8-
6-
4-
2-
0-
0
Labour Market
2
3
4
1
Labour (thousands of hours per month)
+
5
Transcribed Image Text:Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand and supply curves for labour are given by Demand: w= 22 - 3LD Supply: w=4+3LS where w is the wage ($ per hour) and L is the number of hours of employment (measured in thousands of hours per month). a. Use the line drawing tool to plot the demand and supply curves in the graph at the right. Use points with labour hours value of 0 and 5 to draw the lines. Label the lines properly. Carefully follow the instructions above, and only draw the required objects. C Wage ($ per hour) 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 Labour Market 2 3 4 1 Labour (thousands of hours per month) + 5
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