The industry equilibrium wage/employment combination
Competitive Market Equilibrium. Suppose demand and supply conditions in the competitive market for unskilled labor are as follows:
Qd=66.25-5P (demand)
Qs=-27.5+10P (supply)
where Q is millions of hours of unskilled labor and P is the wage rate per hour.
Calculate the industry equilibrium wage/employment combination.
© BrainMass Inc. brainmass.com December 19, 2018, 11:55 pm ad1c9bdddfhttps://brainmass.com/economics/employment/industry-equilibrium-wage-employment-combination-134777
Solution Preview
At a competitive market equilibrium price, QD = QS.
That ...
Solution Summary
The industry equilibrium wage/employment combination is determined in this solution, which is given in step by step format.
$2.19