2. Minimum wage legislation The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis. 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 Graph Input Tool Market for Labor in the Fast Food Industry (Dollars per hour) Labor Demanded (Hundreds of workers) 630 Labor Supplied (Hundreds of workers) 18 Wage 16 Supply 14 12 10 Demand 0 90 180 270 360 450 540 630 720 810 900 LABOR (Hundreds of workers) In this market, the equilibrium wage is per hour, and the equilibrium quantity of labor is [ Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a hundred workers. For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied (Dollars per hour) (Hundreds of workers) (Hundreds of workers) Pressure on Wages 12 8 True or False: A minimum wage above $10 per hour is not a binding minimum wage in this labor market. True O False
2. Minimum wage legislation The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis. 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 Graph Input Tool Market for Labor in the Fast Food Industry (Dollars per hour) Labor Demanded (Hundreds of workers) 630 Labor Supplied (Hundreds of workers) 18 Wage 16 Supply 14 12 10 Demand 0 90 180 270 360 450 540 630 720 810 900 LABOR (Hundreds of workers) In this market, the equilibrium wage is per hour, and the equilibrium quantity of labor is [ Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a hundred workers. For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied (Dollars per hour) (Hundreds of workers) (Hundreds of workers) Pressure on Wages 12 8 True or False: A minimum wage above $10 per hour is not a binding minimum wage in this labor market. True O False
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...
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Transcribed Image Text:2. Minimum wage legislation
The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis.
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
Graph Input Tool
Market for Labor in the Fast Food Industry
Wage
6
(Dollars per hour)
16
Supply
14
Labor Demanded
(Hundreds of
workers)
630
Labor Supplied
(Hundreds of
workers)
0
12
10
2 2 0 10
0
°
Demand
90 180 270 360 450 540 630 720 810 900
LABOR (Hundreds of workers)
In this market, the equilibrium wage is $
per hour, and the equilibrium quantity of labor is
Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a
hundred workers.
For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of
pressure exerted on wages in the absence of any price controls.
Wage
(Dollars per hour)
Labor Demanded
(Hundreds of workers)
Labor Supplied
(Hundreds of workers) Pressure on Wages
12
8
True or False: A minimum wage above $10 per hour is not a binding minimum wage in this labor market.
True
False
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