2. Assume that the market for unskilled workers is perfectly competitive and that the demand for unskilled workers is relatively elastic. The government imposes a minimum wage in this market. (a) Using a correctly labeled graph, show the following. a. The market wage rate paid to hired unskilled workers. b. The number of unskilled workers hired. C. The number of unskilled workers still looking for employment. (b) Assume that unskilled workers are the primary source of labor in the agricultural industry, strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum wage law will affect the market for strawberries and identify the following. a. The price of strawberries. b. The quantity of strawberries.
2. Assume that the market for unskilled workers is perfectly competitive and that the demand for unskilled workers is relatively elastic. The government imposes a minimum wage in this market. (a) Using a correctly labeled graph, show the following. a. The market wage rate paid to hired unskilled workers. b. The number of unskilled workers hired. C. The number of unskilled workers still looking for employment. (b) Assume that unskilled workers are the primary source of labor in the agricultural industry, strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum wage law will affect the market for strawberries and identify the following. a. The price of strawberries. b. The quantity of strawberries.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please try to write a clear and understandable answer. If the graphs will be done on paper, please try to have clear handwriting that make is possible to understand the labels as well as the way you got to that answer! Thank you!
Transcribed Image Text:2. Assume that the market for unskilled workers is perfectly competitive and that the demand for unskilled
workers is relatively elastic. The government imposes a minimum wage in this market.
(a) Using a correctly labeled graph, show the following.
а.
The market wage rate paid to hired unskilled workers.
b.
The number of unskilled workers hired.
C.
The number of unskilled workers still looking for employment.
(b) Assume that unskilled workers are the primary source of labor in the agricultural industry,
strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum
wage law will affect the market for strawberries and identify the following.
a.
The price of strawberries.
b. The quantity of strawberries.
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