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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

The Following Figure Illustrates the Labor Demand Curve,LD₁,and Labor Supply