The current quantity demanded of hairdressers is 40,000, and the average salary in the labor market is $25,000 per year. Recently, several salons closed due to competition, which led to employers demanding only 35,000 hairdressers. Assuming that when quantity demanded decreases by 1,000 workers, the average salary will decrease by $700, calculate the new salary in the labor market. Write the exact answer. Do not round.

The current quantity demanded of hairdressers is 40,000, and the average salary in the labor market is $25,000 per year. Recently, several salons closed due to competition, which led to employers demanding only 35,000 hairdressers. Assuming that when quantity demanded decreases by 1,000 workers, the average salary will decrease by $700, calculate the new salary in the labor market. Write the exact answer. Do not round.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

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