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The industry equilibrium wage/employment combination

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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.

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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.