а) In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is workers. (Hint: Enter the quantity of labor in thousands. For example, enter 100,000 for 100 thousands of workers.) * Price ceiling? Suppose a senator introduces a bill to legislate a minimum hourly wage of $12. This type of price control is called a *Quota? *Price floor? *Tax? b) 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. *Upward? Wage Labor Demanded Labor Supplied *Downward? (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 12 8 *Upward? Cause a surplus *Downward? A minimum wage below $10 per hour in this market will have no effect?
а) In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is workers. (Hint: Enter the quantity of labor in thousands. For example, enter 100,000 for 100 thousands of workers.) * Price ceiling? Suppose a senator introduces a bill to legislate a minimum hourly wage of $12. This type of price control is called a *Quota? *Price floor? *Tax? b) 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. *Upward? Wage Labor Demanded Labor Supplied *Downward? (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 12 8 *Upward? Cause a surplus *Downward? A minimum wage below $10 per hour in this market will have no effect?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter26: Factor Markets: With Emphasis On The Labor Market
Section: Chapter Questions
Problem 14QP
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Question
Hello Expert,
Please acknowledge the two images I have attached. On one image, the graph and problem statement is provided. On another image, parts a and b are provided.
Kindly note that some of the questions are dropdown questions, in that they require to look at the dropdown options. Since you don't have access to the platform, I have provided the options in an edited version of the image.
Also, note that the software encourages one to toggle the value which changes the graph. You will have to mentally toggle the graph on your own.
Thank you.
![### Minimum Wage Legislation
The following graph illustrates the labor market in the fast food industry in the fictional town of Supersize City.
**Instructions:**
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 Description:**
The graph represents the relationship between the wage rate and the quantity of labor (in thousands of workers) in the fast food industry. There are two curves on the graph:
- **Supply Curve (Orange Line):** This line slopes upwards from left to right, indicating that as the wage rate increases, the quantity of labor supplied also increases.
- **Demand Curve (Blue Line):** This line slopes downwards from left to right, indicating that as the wage rate increases, the quantity of labor demanded decreases.
The graph includes a **green horizontal line,** denoting a specific wage rate, which intersects both the supply and demand lines.
**Axes:**
- **Y-Axis (Vertical):** Wage (in dollars per hour), ranging from $0 to $20.
- **X-Axis (Horizontal):** Labor (in thousands of workers), ranging from 0 to 700.
**Graph Input Tool:**
The tool located to the right side of the graph allows users to input values to see the effects on the fast-food labor market. The fields in this tool are:
- **Wage:** This box shows the hourly wage in dollars. In the example, the wage is set at $6.
- **Labor Demanded:** This box shows the number of thousands of workers demanded at the given wage rate. In the example, it is 406,000 workers.
- **Labor Supplied:** This box shows the number of thousands of workers supplied at the given wage rate. In the example, it is 210,000 workers.
Adjusting the wage value will dynamically alter the figures for labor demanded and labor supplied, reflecting changes in the market equilibrium.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3be9b87-a949-46fd-8fcb-61cc2e238448%2Fb4827aac-eba0-40d5-82b4-42eb51b2a43e%2Fe00zf1e_processed.png&w=3840&q=75)
Transcribed Image Text:### Minimum Wage Legislation
The following graph illustrates the labor market in the fast food industry in the fictional town of Supersize City.
**Instructions:**
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 Description:**
The graph represents the relationship between the wage rate and the quantity of labor (in thousands of workers) in the fast food industry. There are two curves on the graph:
- **Supply Curve (Orange Line):** This line slopes upwards from left to right, indicating that as the wage rate increases, the quantity of labor supplied also increases.
- **Demand Curve (Blue Line):** This line slopes downwards from left to right, indicating that as the wage rate increases, the quantity of labor demanded decreases.
The graph includes a **green horizontal line,** denoting a specific wage rate, which intersects both the supply and demand lines.
**Axes:**
- **Y-Axis (Vertical):** Wage (in dollars per hour), ranging from $0 to $20.
- **X-Axis (Horizontal):** Labor (in thousands of workers), ranging from 0 to 700.
**Graph Input Tool:**
The tool located to the right side of the graph allows users to input values to see the effects on the fast-food labor market. The fields in this tool are:
- **Wage:** This box shows the hourly wage in dollars. In the example, the wage is set at $6.
- **Labor Demanded:** This box shows the number of thousands of workers demanded at the given wage rate. In the example, it is 406,000 workers.
- **Labor Supplied:** This box shows the number of thousands of workers supplied at the given wage rate. In the example, it is 210,000 workers.
Adjusting the wage value will dynamically alter the figures for labor demanded and labor supplied, reflecting changes in the market equilibrium.
![### Economics Homework: Labor Market Analysis
#### Problem a)
In this market, the equilibrium hourly wage is \$<input>, and the equilibrium quantity of labor is <input> workers. (Hint: Enter the quantity of labor in thousands. For example, enter 100,000 for 100 thousands of workers.)
Suppose a senator introduces a bill to legislate a minimum hourly wage of \$12. This type of price control is called a ___.
Dropdown options:
- Price ceiling
- Quota
- Price floor
- Tax
#### Problem b)
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 (Thousands of workers)** | **Labor Supplied (Thousands of workers)** | **Pressure on Wages** |
|-----------------------------|------------------------------------------|-----------------------------------------|------------------------|
| 12 | <input> | <input> | <dropdown> |
| 8 | <input> | <input> | <dropdown> |
Dropdown options for "Pressure on Wages":
- Upward
- Downward
A minimum wage below $10 per hour in this market will ___.
Dropdown options:
- Cause a surplus
- Have no effect
- Cause a shortage](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3be9b87-a949-46fd-8fcb-61cc2e238448%2Fb4827aac-eba0-40d5-82b4-42eb51b2a43e%2Fo31glr_processed.png&w=3840&q=75)
Transcribed Image Text:### Economics Homework: Labor Market Analysis
#### Problem a)
In this market, the equilibrium hourly wage is \$<input>, and the equilibrium quantity of labor is <input> workers. (Hint: Enter the quantity of labor in thousands. For example, enter 100,000 for 100 thousands of workers.)
Suppose a senator introduces a bill to legislate a minimum hourly wage of \$12. This type of price control is called a ___.
Dropdown options:
- Price ceiling
- Quota
- Price floor
- Tax
#### Problem b)
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 (Thousands of workers)** | **Labor Supplied (Thousands of workers)** | **Pressure on Wages** |
|-----------------------------|------------------------------------------|-----------------------------------------|------------------------|
| 12 | <input> | <input> | <dropdown> |
| 8 | <input> | <input> | <dropdown> |
Dropdown options for "Pressure on Wages":
- Upward
- Downward
A minimum wage below $10 per hour in this market will ___.
Dropdown options:
- Cause a surplus
- Have no effect
- Cause a shortage
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