Find the equilibrium quantity of labor

Question

Problem

The demand and supply curves that we use can also be represented with equations. Suppose that the demand for low-skill labor, Q_D, is represented by the following equation, where W is the wage rate:

Q_D = 53,000,000 - 3,000,000W

 

The supply of low-skill labor, Q_S, is represented by the equation

 

Q_S = -10,000,000 + 6,000,000 W

 

a. Find the equilibrium wage.

 

b. Find the equilibrium quantity of labor.

 

c. What happens if the minimum wage is $8? Does this cause a surplus or a shortage?

 

d. What happens if the minimum wage is $6? Does this cause a surplus or a shortage?

 

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.