Table 4.3
$\begin{array}{|c|c|c|}
\hline \begin{array}{c}
\text { Hourly Wage } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Quantity of } \
\text { Labour } \
\text { Supplied }
\end{array} & \begin{array}{c}
\text { Quantity of } \
\text { Labour } \
\text { Demanded }
\end{array} \
\hline \$ 7.50 & 530,000 & 650,000 \
\hline 8.50 & 550,000 & 630,000 \
\hline 9.50 & 570,000 & 610,000 \
\hline 10.50 & 590,000 & 590,000 \
\hline 11.50 & 610,000 & 570,000 \
\hline 12.50 & 630,000 & 550,000 \
\hline
\end{array}$
Table 4.3 shows the demand and supply schedules for the labour market in the city of Oshawa.
-Refer to Table 4.3.Suppose that the quantity of labour demanded decreases by 80,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Question

Table 4.3
 $\begin{array}{|c|c|c|}
\hline \begin{array}{c}
\text { Hourly Wage } \
\text { (dollars) }
\end{array} & \begin{array}{c}
\text { Quantity of } \
\text { Labour } \
\text { Supplied }
\end{array} & \begin{array}{c}
\text { Quantity of } \
\text { Labour } \
\text { Demanded }
\end{array} \
\hline \$ 7.50 & 530,000 & 650,000 \
\hline 8.50 & 550,000 & 630,000 \
\hline 9.50 & 570,000 & 610,000 \
\hline 10.50 & 590,000 & 590,000 \
\hline 11.50 & 610,000 & 570,000 \
\hline 12.50 & 630,000 & 550,000 \
\hline
\end{array}$ 
Table 4.3 shows the demand and supply schedules for the labour market in the city of Oshawa.
-Refer to Table 4.3.Suppose that the quantity of labour demanded decreases by 80,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Quizplus · Accepted Answer

The new equilibrium is at the intersection of the new demand curve and the supply curve. The new demand curve is 80,000 units to the left of the old demand curve at each wage level. The new equilibrium is at W = $8.50 and Q = 550,000.

Table 43 Table 43 Shows the Demand and Supply Schedules for the Labour