Suppose the Labor Supply Curve Is as Follows

Essay

Suppose the labor supply curve is as follows.The labor supply curve is perfectly elastic at an hourly wage of $8 per hour over the first 100 workers.If more than 100 workers are to be attracted,a wage greater than $8 per hour must be paid.For example,if the wage is $10 per hour,then labor supply is 150 workers.If the wage is $16 per hour,then labor supply is 300 workers.Draw the labor supply curve described.What is the economic rent in the labor market if a wage of $10 per hour is paid and 150 workers are employed? Explain.What is the economic rent if a wage of $16 per hour is paid and 300 workers are employed? Explain.