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There are two distinct sectors: taxidermists (X) and tap dancers (T). It is surprising that there is complete labor mobility between the two sectors. There are 200 equally talented workers who supply their labor in elastically. The demand for taxidermists is EX = 190 - 10 WX, and the demand for tap dancers is ET = 160 -5 W T.
a) What is the competitive equilibrium outcome (equilibrium wage and employment level in each sector) in this labor market?
b) What would happen if the government imposed a minimum wage of $12 that covered only the tap dancer sector?
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