Find equilibrium price and quantity solving the two equation

Assignment Help Business Economics

Reference no: EM13979218

Assume that the market for unskilled fast food workers is given by the following equations:

Demand P = 6.00 - .003Q

Supply P = 4.00 + .002Q

Where P is the price of labor (wage rate/hour) and Q is the quantity of labor hours per day

(a) Find the equilibrium price and quantity solving the two equations. Show graphically the demand and supply curve and mark the equilibrium wage on the graph (no graph no points).

(b) Suppose the government imposes s minimum wage of $5.50 per hour. What is the result in the market? Is there a shortage or surplus? Of how much? (you must figure out the total number of workers either surplus or deficit at the minimum wage of $5.50)

Reference no: EM13979218

Questions Cloud

Fiscal policy refers to change in : Fiscal policy refers to change in

Information about fiat money is fall : Which of the following information about Fiat money is fall? Fiat money

What are the work heat and change in internal energy : What are the work, heat, and change in internal energy for processes bc and ca? What are the work, heat, and change in internal energy for process ab?

Businesses have violated codes of ethics : Unfortunately, these days, we are inundated with news features in which businesses have violated codes of ethics. What are business ethics and please describe some modern day examples where such ethics have been challenged.

Find equilibrium price and quantity solving the two equation : Assume that the market for unskilled fast food workers is given by the following equations: Find the equilibrium price and quantity solving the two equations. Show graphically the demand and supply curve and mark the equilibrium wage on the graph.

Legal position in respect of the above facts : The partnership had failed to renew its insurance policy and so there was no insurance in place at the time of the accident. It seems likely that the firm has not got enough money to pay the likely damages to the injured customer and to pay Duncan..

Find the wavelength of the light radiated : An isolated atom of a certain element emits light of wavelength 501 nm when the atom falls from its fifth excited state into its second excited state. The atom emits a photon of wavelength 419 nm when it drops from its sixth excited state into its..

The federal reserve uses to conduct monetary policy : The main tool that the federal reserve uses to conduct monetary policy is

General analysis of proposed project : You have been asked to provide the company with a general analysis of this proposed project. Your specific task is to produce a report discussing the following key aspects of this expansion project:

User Account

All Pages