Answer to Question #42783 in Microeconomics for Reny
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.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!