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.

The following figure illustrates the labor demand curve, LD<sub>1</sub>, and labor supply curve, LS<sub>1</sub>, 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?

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

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