The tables gives the demand for and supply of teenage labor. Wage Rate - Quandit

Question

The tables gives the demand for and supply of teenage labor. Wage Rate - Quandity demanded - Quantity supplied: 4 - 3,000 - 1,000 : 5 - 2,500 - 1,500 : 6 - 2,000 - 2,000 : 7 - 1,500 - 2,500 : 8 - 1,000 - 3,000.

a. What are the equilibrium wage rate and level of employment?

b. What is the quantity of unemployment?

c. If a minimum wage of $5 an hour is set for teenagers, how many hours do they work?

d. If a minimum wage of $5 an hour is set for teenagers, how many hours are unemployed?

e. If a minimum wage of $7 an hour is set for teeagers, what are the quantities of employment and unemployment?

f. If a minimum wage is set at $7 an hour and demand increases by 500 hours a month, what is the wage rate paid to teenagers and how may hours of their labor is unemployed?

Explanation / Answer

a. the equilibrium wage rate is 6 and the level of supply and demand is 2000 units

b. the unemployment is 1000 units

to answer all these questions we need the total employment, and the payments also. with the above information i can not answer all these. please post the total question, i will answer it again.

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