Given labour demand=c-dw
Labour supply=a+be
Determine the equilibrium w
To determine the equilibrium wage (w), we need to set the demand for labor equal to the supply of labor:
c - dw = a + be
Rearranging the equation, we have:
be + dw = c - a
Factoring out w on the left side of the equation, we get:
w(b + d) = c - a
Finally, dividing both sides of the equation by (b + d), we can solve for w:
w = (c - a) / (b + d)
So, the equilibrium wage is (c - a) / (b + d).
To determine the equilibrium wage (w), we need to find the point where the labor demand is equal to the labor supply. In other words, we need to find the value of w that satisfies the equation:
c - dw = a + be
First, let's simplify the equation by rearranging it:
c - a = dw + be
Next, we can divide both sides of the equation by d + b to isolate w:
(w) = (c - a) / (d + b)
So, the equilibrium wage (w) is equal to (c - a) divided by (d + b).
Note: The equilibrium wage represents the wage level at which the quantity of labor demanded by firms is equal to the quantity of labor supplied by workers.
To determine the equilibrium wage (w), we need to find the point where the labor demand (c - dw) equals the labor supply (a + be).
Setting the labor demand equal to labor supply, we have:
c - dw = a + be
Next, we isolate the variable "w" by moving all the terms involving "w" to one side of the equation:
-c + a = dw + be
Now, we can divide both sides of the equation by (d + b) to solve for w:
(w = (-c + a)/(d + b))
Therefore, the equilibrium wage is (-c + a)/(d + b).