Problem
The labor market model (I): Suppose the following equations characterize supply and demand in the labor market model:
labor supply: Ls = 2 × w + 30
labor demand: Ld = 60 - w
Equilibrium occurs at an employment level L* and a wage w*, so that the labor market clears. That is, supply is equal to demand: Ls = Ld.
(a) What are the endogenous variables in the labor market model?
(b) Solve for the equilibrium values of these endogenous variables.
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.