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When forming a graph or model it is not necessary to provide perfectly proportioned graphs, just draw it on the paper and take the photo by smart device. It is necessary to accurately present all relevant labels and to include all available or calculable data points and their respective values. 3 sentences for each short answer question.
Consider a labor market in which LD = 500 – 45W and LS = -200 + 25W.
What is the equilibrium value for labor?
What is the market clearing wage?
What is the reservation wage?
What is the number of unemployed in this market?
If a wage of $10.25 were to be imposed on this market, what would be the value for labor supply?
At a wage of $10.25 what would be the value for labor demand?
Provide a properly labeled and appropriately articulated Labor Market Model given the labor supply and demand equations provided and the imposed wage of $10.25. (graph)
Based on the labor market model you’ve now illustrated, how would you describe the current condition of this market given the imposed wage? Be specific and use values in description as appropriate. (short answer)
Consider a labor market in which LD = 400 – 4W and LS = 250 + 3W.
Provide a properly labeled and appropriately articulated Labor Market Model given the labor supply and demand equations provided. (graph)
Based on labor market model you’ve now illustrated, how would you interpret this labor market? Be sure to discuss those issues you see arising from your interpretation of the graphic model. Be specific and use values in description as appropriate. (short answer)
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