Assume that a labor market has the following supply and demand functions: Ls = 179 + 8W LD = 604 - 7W where W is the wage. Insurance is added as a benefit for employees. Employers pay $19 per employee for insurance and the employees value the insurance at $13. What is the new wage with insurance? ROUND TO TWO DECIMAL PLACES

Assume that a labor market has the following supply and demand functions: Ls = 179 + 8W LD = 604 - 7W where W is the wage. Insurance is added as a benefit for employees. Employers pay $19 per employee for insurance and the employees value the insurance at $13. What is the new wage with insurance? ROUND TO TWO DECIMAL PLACES

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Earnings, Productivity, And The Job Market

Section: Chapter Questions

Problem 11CQ

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Assume that a labor market has the following supply and demand functions: LS = 135 + 8W LD = 651 - 4W where W is the wage. Insurance is added as a benefit for employees. Employers pay $14 per employee for insurance and the employees value the insurance at $20. What is the employee's real wage after insurance?
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