Suppose you have estimated the supply curve for the local labor market as: Qs = W - 5, where W is the hourly wage and Qs is the quantity of workers willing to work at each wage. You have estimated the demand curve for the local labor market as: Qd, = 25 - W where W is the hourly wage and Qd is the quantity of workers demanded by employers at each wage.
If the government imposes a minimum wage of $18, what is the size of the labor force, the number of unemployed workers, and the unemployment rate?