How would this affect the market

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Reference no: EM133363851

Question: Consider the impact of a fictional employment subsidy in the city of Portsmouth. This hypothetical subsidy is being proposed to help l.reterans in Portsmouth. The current supply of veterans is given by L5 = w and the current demand for the labor ofyeterans is Ln = 125 - M w. {2 pts] 3} Find the pure-subsidy equilibrium wage [per day] in the labor market for Veterans. [Show you work] bi The proposed subsidy would give firms 3 $1 subsidy per day for every veteran that they hire. How would this affect the market - through labor supply or demand? :11 What is the new market wage that veterans earn':I How much of the subsidy goes to the firms? (Hint: Labor demand pre-subsidy can be written as w = 500 - 40 and labor supply as w = C1 -when U is the number of veterans)

Reference no: EM133363851

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