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Question
Suppose that the supply curve for schoolteachers is LS = 20,000 + 350 W, and the demand curve for schoolteachers is LD = 100,000-150 W, where L = the number of teachers and W = the daily wage.
a. Plot the supply and demand curves.
b. What are the equilibrium wage and employment levels in this market?
c. Now suppose that at any given wage, 20,000 more workers are willing to work as schoolteachers. Plot the new supply curve, and find the new wage and employment level. Why doesn't employment grow by 20,000?
Consider the market demand and supply given by the following: Qd = 50 - P and Qs = 2.5 + 1.5P. Use this information to answer the following questions.
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