Consider the market for workers in a cafe.Labor demand equation: Ld=40-2*wLabor supply equation: Ls=4*w-32w=hourly wage; Ls and Ld are in numbers of workers1) Suppose that the workers in Café Alice think that their wages are too low and go on a strike.As a result, Cafe Alice agrees to increase the hourly wage to $14. How many workers will remain unemployed after the increase? W$859$10$11$12$13$14$15$16$17$18$19$20Ld24222018161412108642ONLELaLaLao0 - 04812162024283236404448

Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…

Answered: Consider the market for workers in a…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the market for workers in a cafe.

Labor demand equation: Ld=40-2*w

Labor supply equation: Ls=4*w-32

w=hourly wage; Ls and Ld are in numbers of workers

1) Suppose that the workers in Café Alice think that their wages are too low and go on a strike.
As a result, Cafe Alice agrees to increase the hourly wage to $14.
How many workers will remain unemployed after the increase?

W
$8
59
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
Ld
24
22
20
18
16
14
12
10
8
6
4
2
ON
LE
LaLaLa
o
0 - 0
4
8
12
16
20
24
28
32
36
40
44
48

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