Demand and supply curves can be represented with equations. Suppose that the demand for low-skilled.

Demand and supply curves can be represented with equations. Suppose that the demand for low-skilled labor, QD, is represented by the following equation, where W is the wage rate: QD = 53,000,000 – 3,000,000W The supply of low-skilled labor, QS, is represented by the equation QS = -10,000,000 + 6,000,000W a. Find the equilibrium wage. (Hint: Set QD = QS and solve for the wage, W.) b. Find the equilibrium quantity of labor. (Hint: Now plug the value you got in part (a) back into QD or QS. You can double-check your answer by plugging the answer from part (a) into both QD and QS to

»Demand and supply curves can be represented with equations. Suppose that the demand for low-skilled labor, QD, is represented by the following equation, where W is the wage rate: QD = 53,000,000 – 3,000,000W The supply of low-skilled labor, QS, is represented by the equation QS = -10,000,000 + 6,000,000W a. Find the equilibrium wage. (Hint: Set QD = QS and solve for the wage, W.) b. Find the equilibrium quantity of labor. (Hint: Now plug the value you got in part (a) back into QD or QS. You can double-check your answer by plugging the answer from part (a) into both QD and QS to see that you get the same result.) c. What happens if the minimum wage is $8? (Hint: Plug W = 8 into both QD and QS.) Does this minimum wage cause a surplus or a shortage? d. What happens if the minimum wage is $6? (Hint: Plug W = 6 into both QD and QS.) Does this minimum wage cause a surplus or a shortage?  

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