The supply and demand for Mandarin-English translators is given by
Supply
:
L
= 150
Demand
:
L
= 200
a) Calculate the wages and levels of employment for Cantonese-English and Mandarin-
English translators in the absence of government intervention.
(b) Now suppose that the government, in an attempt to end wage inequality, required
employers to pay both Mandarin and Cantonese translators a wage of $15. Ana-
lyze the e§ects of this measure in both markets. What is the quantity supplied?
What is the quantity demanded? What happens to the levels of employment for
each market? In addition to numerical answers, you should use supply/demand
graphs (they do not need to be very accurat