Calculate the size of the surplus or shortage of hours


Calculate the size of the surplus or shortage of hours created by the imposition of the minimum wage ($19)

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Assume that the market for unskilled labour in Australia is a competitive market and can be described by the following demand and supply curves:

D = 1,500,000 - 60,000W S = 120,000W - 1,200,000

Where W = wage rate per hour for labour, D is hours of labour demanded and S is hours of labour supplied.

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Business Economics: Calculate the size of the surplus or shortage of hours
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