Assume that the labor demand equation for a fictional country is Ld = 90 – 2w, where w is the wage per hour worked. Assume also that the labor supply equation for that country is Ls = 0.5(w)
a. The equilibrium wage is $_____ and the equilibrium quantity of labor employed is____ worker
b. At the equilibrium wage,____ people are unemployed.
c. If the supply of workers increased, the number of unemployed would:
increase, decrease, or stay the same?