00:01
So here we've got a labor market.
00:02
Employment supply is equal to 10 plus w.
00:06
Employment demand is equal to 40 minus 4w, right? so first of all, for a equilibrium is where these things are equal, right? it's where unemployment supply is equal to employment demand.
00:24
So again, assuming competition.
00:26
So let me set these equal to each other, four w.
00:30
This gives me 5 .w is equal to 30.
00:33
W equals to 6.
00:35
Once i have w, i can plug w back into either of these things, for example.
00:39
And i get employment supply is equal to 16.
00:43
And employment demand is also equal to 16.
00:46
Check.
00:47
That would be the equilibrium.
00:51
The unemployment rate would be what? uh, the, so the, a, the unemployment rate would be what? rate is perhaps not unsurprisingly equal to 0%.
01:10
And we can see that if we draw the market, right? we have quantity, which is equal to employment.
01:16
We have a price, which is equal to the wage.
01:20
We have employment supply...