Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the labor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for the quantity of labor (measured in thousands of workers) and W stands for the wage rate (measured in dollars per hour):
Part 2
Demand:
Supply:
.
Part 3
First, calculate the free-market equilibrium wage and quantity of labor.