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Suppose there is a labor market with a demand curve for labor given by Qd= 10 -W and a supply curve for labor given by Qs= W, where W is the wage rate.
a. Using algebra calculate the equilibrium wage rate and the equilibrium level of unemployment and draw a graph.
b. Now suppose there is a minimum wage of $6 per hour put in place. Redraw the above demand and supply curves and show the effect of the minimum wage.
c. At the new level of employment, what is the minimum wage these workers would accept and still be willing to work?
d. Suppose the firms decided to reduce worker benefits by $1.99 per hour. Would the workers tolerate such restrictions? Why?
e. If such reductions took place, show on a graph below who actually benefited (and by how much) from the minimum wage.
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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Prepare a major handout on the key principles of instructional leadership
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