Essay
The following figure illustrates the labor demand curve,LD₁,and labor supply curve,LS₁,in the market for engineers.
a)What are the equilibrium wage rate and employment level in the market?
b)If the government thinks that engineers are underpaid in the country and fixes a minimum wage of $50 per hour,what will be the impact on the level of employment?
c)If engineers unionize themselves and negotiate a wage that is $30 higher than the market-clearing wage,what will be the impact on the employment level?
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a)The equilibrium wage is determined by ...View Answer
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