In: Economics
suppose that you have been hired to analyze wages in simple market. The demand for labour and supply of labour can be represented by following equations:
Demand: LD=100-4W
Supply: LS=6W
a. calculate the new equilibrium wage(price) and quantity of labour employed in market.
b. A new employer enters the market causing labour demand to become
Demand: LD=120-4W
Calculate the new equilibrium wage(price) and quantity of workers employed in this market.
c. Illustrate in one graph your answers to parts a and b.