Suppose the demand for skilled military personnel is given by the curve L=160−5w, where L is...
Suppose the demand for skilled military personnel is given by the curve L=160−5w, where L is the labor demanded per day in thousands and w is the wage rate. Suppose the supply curve for skilled military personnel is given by L=5w.
What is the equilibrium wage rate and equilibrium employment for skilled military personnel?
The equilibrium wage rate is $16 per hour. The equilibrium quantity of labor is 80 thousand.
Now suppose due to economic problems that the government imposes a wage ceiling of $14.00 on all skilled military personnel.
How many skilled military personnel are demanded? 90 thousand.
How many are supplied? 70 thousand.
This results in a _________ (shortage or surplus?) of _______ thousand skilled military personnel.
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Suppose the demand for skilled military personnel is given by
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