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Suppose the demand and supply of retail workers are (D): w=150-3E and (S): E= 50+2E, where...

  1. Suppose the demand and supply of retail workers are (D): w=150-3E and (S): E= 50+2E, where w is wage and E is employment.
    1. What are the equilibrium wage and employment? Draw demand and supply curves.
    2. Suppose the government imposes $80 of minimum wage; how many workers are unemployed? Draw the impact of the minimum wage on the graph.
    3. Suppose the government imposes $120 of minimum wage; how many workers are unemployed? Draw the impact of the minimum wage on the graph.
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