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Demand and supply of labor

How do you solve for a, b, c, e in the equations: Qd = a-bW and Qs = c+eW when you know the equilibrium wage (or price) is $4, there are 100,000 people employed, Elasticity of demand is equal to -0.4 and Elasticity of supply is equal to 0.2?

Solution Summary

This solution looks at how to solve the coefficients for the demand and supply equations. This is for a labor application.

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