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In: Economics

3. Consider the labor market for low-skilled workers: those who lack a high-school diploma and any...

3. Consider the labor market for low-skilled workers: those who lack a high-school diploma and any experience in a skilled trade.

a) Suppose that the equilibrium wage for low-skilled workers in Idaho is $9.00 / hour and equilibrium quantity is 45,000. Draw a labor-market supply/demand graph that illustrates that equilibrium.

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Expert Solution

3. The graph represents the market for low skilled labor in Idaho. The y-axis is the wage rate of low skilled labor (in dollars/hour). The y-axis represents the quantity of low skilled labor (in thousands). The equilibrium occurs when the downward sloping labor demand curve DL and upward sloping supply curve SL intersects. This occurs at e point where equilibrium wage of low skilled labor is $9/hour while equilibrium quantity of low skilled labor employed is 45 thousands

Rahul Sunny answered 2 years ago
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