Problem
Suppose the supply curve of physicists is given by w = 10 + 5£, whereas the demand curve is given by w = 50 - 3£. Calculate the equilibrium wage and employment. Suppose now that the demand for physicists increases and the new demand curve is given by w = 70 - 3£. Assume that this market is subject to cobwebs. Calculate the wage and employment levels in each "round" as the wage and employment levels slowly adjust to the demand shock. What is the new equilibrium level of wages and employment?
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.