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Homework Help: Econ homework Supply/Deman

  1. Jul 9, 2008 #1
    1. The problem statement, all variables and given/known data
    Suppose that a new law requires every firm to provide its workers with free cell phones. The cell phones are worth $200 a year to the works and cost the firms $500 a year to provide. On a labor supply/demand curve, how do I know how much the equilibrium wage goes up or down after the law is enacted?

    3. The attempt at a solution
    I am assuming the equilibrium wage goes down between $200 and $500 dollars, but am not sure how to justify this mathematically?
  2. jcsd
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