Given labour demand=c-dw
Labour supply=a+bw
Determine equilibrium w
At equilibrium, the quantity demanded of labor equals the quantity supplied. So we can set the labor demand equal to the labor supply and solve for w.
c - dw = a + bw
Rearrange the equation to solve for w:
bw - dw = a - c
Factor out w on the left side:
w(b - d) = a - c
Divide both sides of the equation by (b - d):
w = (a - c) / (b - d)
So, the equilibrium wage (w) is equal to (a - c) divided by (b - d).
To determine the equilibrium w (wage), we need to find the value of w at which labour demand equals labour supply.
Labour demand is given by the equation: D = c - dw
Labour supply is given by the equation: S = a + bw
At equilibrium, D (labour demand) equals S (labour supply). Therefore, we can set the equations equal to each other and solve for w:
c - dw = a + bw
Rearranging the equation, we can group the w terms on one side:
dw + bw = c - a
Factoring out the common factor w from both terms:
w(d + b) = c - a
Finally, we can solve for w by dividing both sides by (d + b):
w = (c - a) / (d + b)
This gives us the equilibrium wage w at which labour demand equals labour supply.
To determine the equilibrium wage (w), we need to find the value of w at which the quantity of labor demanded equals the quantity of labor supplied. This occurs when the labor demand and labor supply equations are equal to each other. Let's set them equal and solve for w.
Labour demand = Labour supply
c - dw = a + bw
To solve for w, we need to isolate it on one side of the equation. Let's move all the terms containing w to one side:
-c + a = bw - dw
Next, let's factor out w from the right side:
(-c + a) = w(b - d)
Now, divide both sides of the equation by (b - d) to solve for w:
w = (-c + a) / (b - d)
This is the equation for the equilibrium wage (w). By plugging in the values of a, b, c, and d, you can determine the specific value of w.