Table 4-5 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. Refer to Table 4-5. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor demanded? A) 400,000 B) 370,000 C 340,000 Co. 000

Table 4-5 shows the demand and supply schedules for the low-skilled labor market in the city of Westover. Refer to Table 4-5. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor demanded? A) 400,000 B) 370,000 C 340,000 Co. 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the demand and supply curves for unskilled labor in the labor market are as shown in the following figure. Congress is about to enact a $12 per-hour minimum wage. Congressional staff economists are urging legislators to consider adopting an earned-income tax credit instead. Suppose neither workers nor employers would support that proposal unless the expected value of each party's economic surplus would be at least as great as under the minimum wage. a. In the graph below, use the point tool provided 'Wmin' to indicate the wage and employment combination that would result in a $12 per-hour minimum wage. W ($/hour) 24 20 16 12 8 4 0 Labor Market D S 4,000 8,000 12,000 16,000 20,000 24,000 L (person-hours/day) Tools -9 W. mn Ⓡ b. Calculate the amounts by which employer surplus and worker surplus change as a result of the minimum wage. Employer surplus would be (Click to select) ✔ by $ by $ per day. per day. Worker surplus would be (Click to select) c. Which of the following…
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dollars per hour) 20 18 16 14 12 2 0 0 1 Supply Demand 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is $ Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Thousands of workers) 6 900 and the equilibrium quantity of labor is Labor Supplied (Thousands of workers) ? 378 thousand workers.
↓ The graph illustrates a labor market in which there is a minimum wage of $5 an hour Draw shapes that represent the following 1) firms' surplus Label it FS 2) workers' surplus. Label it WS 3) deadweight loss. Label it DWL 4) the potential loss from job search Label it Loss >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape Wage rate (dollars per hour) FS 3- 0+ 18 19 (18,2) Minimum wage D 24 25 21 22 23 20 Quantity (millions of hours per year) a G
9. Minimum wage legislation The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool ?) 20 Market for Labor in the Fast Food Industry 18 I Wage (Dollars per hour) 16 Labor Supplied (Thousands of workers) Supply Labor Demanded 900 14 (Thousands of workers) 12 10 8 Demand 4. 0. 90 180 270 360 450 540 630 720 810 900 LABOR (Thousands of workers) WAGE (Dollars per hour)
Figure 4-17 Price $8.00 7.00 6.00 5.00 4.00 30 40 50 60 70 Refer to Figure 4-17 4-17.png. If this figure represented a labor market where the equilibrium price for labor was $6 an hour and the government decided to implement a minimum wage of $8 an hour, which of the following are true? 30 people would be better off because they get to keep their jobs at the new $8 an hour minimum wage. O 20 people would be made actively worse off because they would have voluntarily worked for $6 an hour, but are now unemployed and have no job at all. there is a surplus of labor equal to 40 workers that represents an increase in unemployment. O All of the answer choices are correct
Which of the following is the most likely outcome of minimum wage laws? an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
Suppose labor demand for low-skilled workers in the United States is w = 35 – 0.2Ewhere E is the number of workers (in millions) and w is the hourly wage. There are 100 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 25 million low-skill immigrants would enter the U.S. and supply labor inelastically. What is the market-clearing wage if immigration is not allowed? What is the market-clearing wage with open borders?
3) The following data table contains the labor demand and labor supply schedules for low-skilled workers in San Francisco. Use the data to answer the questions below. Qd-labor demand W-wage $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 Qs-labor supply 210,000 200,000 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 a) Find the equilibrium wage and quantity of workers for low-skilled workers in San Francisco. Show equilibrium graphically and include the wage intercepts.
An effective minimum wage imposes a price ceiling on the wages of various categories of low-skill workers. increases the demand for low-skill workers. makes it easier for low skill workers to find jobs. O increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.
Minimum Wages and Unions Assume an industry without legal minimum wages and unions. Show in a diagram how the equilibrium wage W* is determined, and briefly explain all the concepts in the diagram. Now suppose a minimum wage, WMIN, is legislated at a level lower than W*, i.e. WMIN<W*. Show it in the diagram and explain whether the labour market outcomes in part a. change, and how. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in the diagram and explain what the labour market outcomes will be. Now suppose a workers’ union is created and successfully negotiates wage WUNION, which is above both W* and WMIN, i.e. WUNION>WMIN>W*. Explain what the labour market outcomes will be compared to the previous part.
The graph below depicts the labor market for security guards in Philadelphia, PA. The state subsidizes labor through a tax credit that gives security guards $ 4 per hour worked. wage (S/hr) 18 Labor Supply 16 14 12 10 8. 6 4 Labor Demand 2 40 60 80 100 120 140 160 180 Q (thousand hours) 20 (a) Mark the axes with the equilibrium hours worked Q and wage W without the subsidy. The market wage is S and guards work thousand hours. (b) Mark the graph with the wage paid WS by firms after the subsidy goes into effect. Firms pay $ per hour with the subsidy. (c) Mark the graph with the total pay received by workers WR after the subsidy goes into effect. Workers receive $ per hour with the subsidy. (d) Before the subsidy guards work Q= hours per week. After the subsidy they work QS= hours per week. Label the quantity axis with hours worked Q and QS. (e) Total earnings by all janitors is $ after the subsidy. The taxpayer cost of the subsidy is $
$18 Ls $16 $14 $12 $10 $8 $4 $2 Lp $0 0. 6. 4 8. 10 12 14 16 18 Employment of Teen Workers (Thousands) Consider the supply and demand for teen workers in large state as shown in the model above. (a) Without a minimum wage in place, the equilibrium wage is Select ] with Select] teens employed. (b) With a minimum wage of $14, Select] teens will be seeking jobs in this market, and there will be only [Select ] jobs available. (c) How much unemployment is created as a result of the $14 minimum wage. [ Select ] (d) A more realistic drawing of the minimum wage model that would demonstrate a smaller decline in teen employment would show the labor demand and labor supply curves as more (Select ] 2, Wages of Teen Workers