Asked by anonymous

Can anyone get me started on this?
A country has 2 regions, the North and South, which are identical in all respects except for the hourly wage and number of workers. The demand for labor in the region is Wn=$20 - .5En and Ws=$20 - .5Es where En and Es are millions of workers. Currently there are 6 million workers in the North and 18 million workers in the South. What is the wage in each region?

Answers

Answered by economyst
barring any exchange or movement between the two regions, and assuming all workers are hired,
Wn=20-.5(18) = 9
Ws=20-.5(6) = 17

Answered by anonymous
Thanks.

Is the first one supposed to equal 11?
Answered by economyst
right, my bad.
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