-The figure above shows the demand for and supply of low-skilled labor. High-skilled workers have twice the marginal product of low-skilled workers. The cost of acquiring the skill adds $5 an hour to the wage that must be offered to attract high-skilled labor at each employment level.
a) What is the equilibrium wage rate of low-skilled labor and the equilibrium quantity of low-skilled labor employed?
b) Draw and explain the demand curve for high-skilled labor.
c) Draw and explain the supply curve of high-skilled labor.
d) What is the equilibrium wage rate of high-skilled labor and the equilibrium quantity of high-skilled labor employed?

Question

Quizplus · Accepted Answer

The Answer of 
-The figure above shows the demand for and supply of low-skilled labor. High-skilled workers have twice the marginal product of low-skilled workers. The cost of acquiring the skill adds $5 an hour to the wage that must be offered to attract high-skilled labor at each employment level.
a) What is the equilibrium wage rate of low-skilled labor and the equilibrium quantity of low-skilled labor employed?
b) Draw and explain the demand curve for high-skilled labor.
c) Draw and explain the supply curve of high-skilled labor.
d) What is the equilibrium wage rate of high-skilled labor and the equilibrium quantity of high-skilled labor employed?

-The Figure Above Shows the Demand for and Supply of Low-Skilled