Question

In: Economics

Suppose there is a local employment (i.e., labor) market characterized by the following supply and demand...

Suppose there is a local employment (i.e., labor) market characterized by the following supply and demand functions: Quantity Supplied = 8*Wage Quantity Demanded = 150 - 2*Wage a). What is the equilibrium number of workers and market wage?

Solutions

Expert Solution

Answer : Equilibrium number workers = 120 and Market wage = 15

Explanation:

At Equilibrium ,

Quantity Demanded = Quantity Supplied

150 - 2W= 8W

10W= 150

W = 150/10 = 15

Equilibrium number of workers = 150 -2W

= 150 - (2 * 15 )

= 150 - 30 = 120

Rahul Sunny answered 2 years ago
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