4. 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 Market for Labor in the Fast Food Industry 20 18 I Wage (Dollars per hour) 6 Supply 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) 500 210 14 12 10 Demand 6 4 2 O 50 100 150 200 250 300 350 400 450 500 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is s and the equilibrium quantity of labor is [ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a 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) (Thousands of workers) (Thousands of workers) Pressure on Wages 8. 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. O True O False WAGE (Dollars per hour)
4. 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 Market for Labor in the Fast Food Industry 20 18 I Wage (Dollars per hour) 6 Supply 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) 500 210 14 12 10 Demand 6 4 2 O 50 100 150 200 250 300 350 400 450 500 LABOR (Thousands of workers) In this market, the equilibrium hourly wage is s and the equilibrium quantity of labor is [ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a 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) (Thousands of workers) (Thousands of workers) Pressure on Wages 8. 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. O True O False WAGE (Dollars per hour)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:4. 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
Market for Labor in the Fast Food Industry
20
18
I Wage
(Dollars per hour)
6
Supply
16
Labor Demanded
Labor Supplied
(Thousands of
workers)
500
210
(Thousands of
workers)
14
12
10
Demand
6
4
2
O 50 100 150 200 250 300 350 400 450 500
LABOR (Thousands of workers)
In this market, the equilibrium hourly wage is $
, and the equilibrium quantity of labor is
thousand workers.
Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a
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)
(Thousands of workers)
(Thousands of workers)
Pressure on Wages
8
12
True or False: A minimum wage above $10 per hour is a binding minimum wage in this market.
O True
O False
WAGE (Dollars per hour)
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