4. 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. Supply # 10 11 II WAGE (Dollars per hour) 20 10 16 0 50 Demand 180 270 360 450 540 430 720 810 900 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 900 Labor Supplied (Hundreds of workers) (7 378

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4. 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.
Supply
##
Demand
222102.
WAGE (Dolars per hour)
18
16
14
4
2
0
O
50 180 270 360 450 540 630 720 810 900
LABOR (Hundreds of workers)
Graph Input Tool-
Market for Labor in the Fast Food Industry
Wage
(Dollars per hour)
Labor Demanded
(Hundreds of
workers)
900
Labor Supplied
(Hundreds of
workers)
378
Transcribed Image Text:4. 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. Supply ## Demand 222102. WAGE (Dolars per hour) 18 16 14 4 2 0 O 50 180 270 360 450 540 630 720 810 900 LABOR (Hundreds of workers) Graph Input Tool- Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 900 Labor Supplied (Hundreds of workers) 378
In this market, the equilibrium wage is s
Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a
per hour, and the equilibrium quantity of labor is
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.
Labor Demanded
Labor Supplied
Wage
(Dollars per hour) (Hundreds of workers) (Hundreds of workers)
12
8
True
False
Pressure on Wages
True or False: A minimum wage below $10 per hour is not a binding minimum wage in this labor market.
hundred workers.
Transcribed Image Text:In this market, the equilibrium wage is s Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a per hour, and the equilibrium quantity of labor is 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. Labor Demanded Labor Supplied Wage (Dollars per hour) (Hundreds of workers) (Hundreds of workers) 12 8 True False Pressure on Wages True or False: A minimum wage below $10 per hour is not a binding minimum wage in this labor market. hundred workers.
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