Consider a labor market, where firms demand labor supplied by workers. We will use one supply curve, described
q^2=20+w^2
First, find the equilibrium wage and number of workers hired using an elastic demand curve:
Qe^D =60-4w.
When we impose a minimum wage of $10, what is the quantity of labor demanded and the quantity of labor supplied? Take the ratio of these to calculate the employment rate: divide the number of workers actually hired by the number of workers who would be willing to work at such a wage. What are total wages paid in equilibrium? What about after the minimum wage is imposed?