Native labor demand and supply are given by the following functions: w = 19 - 0.001ED and w = 10 + 0.0005ES Show your work a.What is the native employment in equilibrium? [a] b.What is the native equilibrium [b]   Suppose that 2,000 immigrants that are perfectly substitutes for native workers now enter the market and their labor supply is perfectly inelastic. c.How many natives will be employed after the immigrants enter (round to the nearest whole number)? [c] d.What is the equilibrium wage for all workers in this market after the immigrants enter (round to the hundredth of a dollar)? [d]

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter14: Labor Markets And Income
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Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...
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Economics: Labor Economics

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Native labor demand and supply are given by the following functions: w = 19 - 0.001ED and w = 10 + 0.0005ES

Show your work

a.What is the native employment in equilibrium? [a]

b.What is the native equilibrium [b]

 

Suppose that 2,000 immigrants that are perfectly substitutes for native workers now enter the market and their labor supply is perfectly inelastic.

c.How many natives will be employed after the immigrants enter (round to the nearest whole number)? [c]

d.What is the equilibrium wage for all workers in this market after the immigrants enter (round to the hundredth of a dollar)? [d]

 

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