The demand and supply of labor are given by:
Q_d = 1,000 - 10W
Q_s = 800 + 40W
where Q_d is the quantity demanded of labor, Q_s is the quantity supplied of labor, and W is the hourly wage.
a. What is the equilibrium wage and level of employment?
b. Suppose the government mandates a minimum wage of $7. How many workers will firms employ?
c. How many workers are unemployed because of the minimum wage of $7?

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The Answer of The demand and supply of labor are given by: Q_d = 1,000 - 10W Q_s = 800 + 40W where Q_d is the quantity demanded of labor, Q_s is the quantity supplied of labor, and W is the hourly wage. a. What is the equilibrium wage and level of employment? b. Suppose the government mandates a minimum wage of $7. How many workers will firms employ? c. How many workers are unemployed because of the minimum wage of $7?

The Demand and Supply of Labor Are Given By