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Unformatted text preview: 5. Suppose in a labour market that labour demand, L d ; is given by L d = 3200 & 80 w where w is the market wage. Labour supply, L s ; is non-linear with L s = 100 w & w 2 : Find the market wage w & and level of employment L & where labour demand equals labour supply. Draw a graph of this market equilibrium (you should really put w on the &y-axis±but you will ²nd it easier if you instead put L on the &y-axis± then ³ip). Can you interpret a backward bending labour supply curve? 1...
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This note was uploaded on 12/31/2011 for the course ECON MR 102 taught by Professor Huyduong during the Winter '11 term at RMIT Vietnam.
- Winter '11