If demand and supply are represented by the equations Demand: LD =13 − (1/3)W Supply: LS...
If demand and supply are represented by the equations
Demand: LD =13 − (1/3)W
Supply: LS = (1/2) W − 2
then the equilibrium wage (W* ) and employment level (L* ) will equal
|
W* = $18, L* = 6. |
||
|
W* = $18, L* = 7. |
||
|
W* = $16, L* = 8. |
||
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W* = $12, L* = 4. |
Homework Answers
the equilibrium wage (W* ) and employment level (L* ) is where LD =LS
LD = LS
13 -(1/3)W = (1/2)W - 2
15 = 5*W / 6
W* = 15*6 /5
W* = $18
LD = LS at W* =18,
so
L* = (1/2)*18 -2 = 7
L* =7
ANs is b) W* = $18, L* = 7.
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If demand and supply are represented by the equations
Demand: LD =13 − (1/3)W
Supply: LS...
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