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1. The Demand Curve For Mid-tier Information Technology (IT) Consultants Is Given By The Equation: 0

1. The demand curve for mid-tier Information Technology (IT) consultants is given by the equation: 0= 100,000 - 150W where Q = the number of IT consultants and W=the hourly wage. The supply curve is Qs = 20,000 + 350W. a. Graph the demand and supply curve. Wages should be on the y-axis (vertical) and Quantity of labor on the x-axis (horizontal). (Hint: You can do this by selecting arbitrary values for W and determining and Qs Alternatively, you can determine the x and y intercepts of the Demand and Supply curves and connect these "coordinates.) b. Using the demand and supply equations, calculate the equilibrium wage and number of IT consultants hired? Label this point on your graph. C. Now suppose that at any given wage, 15,000 more workers are willing to work as IT consultants. Derive and state the new labor supply equation. Plot the new labor supply curve on the same pair of axes used in part (a). d. What is the new equilibrium wage and employment level? Has employment grown by 15,000? Why or why not?