Consider the following model of the labor market:
Labor Supply: $L ^ { s } = 2 w + 2$
Labor Demand: $L ^ { d } = 3 - 3 w$
a. Identify the model's parameters.
b. Identify the endogenous variables.
c. Solve the model.
d. In the labor supply equation, if the " $\bar { e }$ " increases to some constant $\bar { \ell } 1$ , what would happen to the equilibrium wage and equilibrium labor?

Question

Consider the following model of the labor market:
Labor Supply: $L ^ { s } = 2 w + 2$ 
Labor Demand: $L ^ { d } = 3 - 3 w$ 
a. Identify the model's parameters.
b. Identify the endogenous variables.
c. Solve the model.
d. In the labor supply equation, if the " $\bar { e }$ " increases to some constant $\bar { \ell } > 1$ , what would happen to the equilibrium wage and equilibrium labor?

Quizplus · Accepted Answer

The Answer of Consider the following model of the labor market:
Labor Supply: $L ^ { s } = 2 w + 2$ 
Labor Demand: $L ^ { d } = 3 - 3 w$ 
a. Identify the model's parameters.
b. Identify the endogenous variables.
c. Solve the model.
d. In the labor supply equation, if the " $\bar { e }$ " increases to some constant $\bar { \ell } > 1$ , what would happen to the equilibrium wage and equilibrium labor?

Consider the Following Model of the Labor Market: Labor Supply Ls=2w+2L ^ { s } = 2 w + 2Ls=2w+2

Consider the Following Model of the Labor Market:
Labor Supply $L ^ { s } = 2 w + 2$