Question

The supply curve of wok requiring a high school degree or less is Qs = -13,000...

The supply curve of wok requiring a high school degree or less is Qs = -13,000 + 2000P and the demand for such work is Qd = 11,000 - 1000P. assume this is a competitive market.

1) what is the market wage and quantity?

2) What quantity is hired if a minimum wage of $10 is imposed? what is the deadweight loss of this policy?

3) Instead of a minimum wage, policymakers introduce a $1.5 wage subsidy (EITC). What is the quantity of work supplied under this policy? What is the DWL of this policy?

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