Answer to Question #42783 in Microeconomics for Reny
In an economy labour supply: w=20+4L, labour demand: w=50-2L. Labour is organized in a Union acting as a monopolist. Find the level of labour employed in the economy and the unemployed one
Labour supply: w=20+4L, labour demand: w=50-2L.Labour is organized in a Union acting as a monopolist. We should find the level of labour employed in the economy in the point where labour supply equals labour demand, so: 20 + 4L = 50 - 2L 6L = 30, L = 5 workers.
Their wage is w = 20 + 4*5 = $40 To find the number of unemployed workers we should know the total number of population.