Problem
Using the table below, construct the labor supply curve. Show the equilibrium point in the labor market and find the equilibrium level of real wage and employment. (4 Points)
|
Real Wage
|
Q of Labor Supplied
|
|
11.80
|
100
|
|
13.40
|
200
|
|
15.89
|
300
|
|
20.71
|
400
|
|
50
|
500
|
Now assume that the government decides to institute a minimum wage of 20.71. What will happen in the labor market? Explain and illustrate graphically.
Given the production function in question 1 and the labor market in question 2, calculate the equilibrium level of output?
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.