Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. Graph Input Tool Market for Labor 24 Supply I Wage (Dollars per hour) 21 3.00 Labor Supplied (Thousands of workers) 18 Labor Demanded (Thousands of workers) 1,050 150 15 12 9 Demand O 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $15.00 Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.00. Which of the following statements are true? Check all that apply. O In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium. O If the minimum wage is set at $15.00, the market will not reach equilibrium. O Binding minimum wages cause structural unemployment. O In this labor market, a minimum wage of $11.50 would be binding. WAGE (Dollars per hour)
Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. Graph Input Tool Market for Labor 24 Supply I Wage (Dollars per hour) 21 3.00 Labor Supplied (Thousands of workers) 18 Labor Demanded (Thousands of workers) 1,050 150 15 12 9 Demand O 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $15.00 Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.00. Which of the following statements are true? Check all that apply. O In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium. O If the minimum wage is set at $15.00, the market will not reach equilibrium. O Binding minimum wages cause structural unemployment. O In this labor market, a minimum wage of $11.50 would be binding. WAGE (Dollars per hour)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the market for labor depicted by the demand and supply curves that follow.
Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator.
Graph Input Tool
Market for Labor
24
I Wage
(Dollars per hour)
21
Supply
3.00
Labor Supplied
(Thousands of
workers)
18
Labor Demanded
(Thousands of
workers)
1,050
150
15
12
Demand
3
150 300 450 600 750 900 1050 1200
LABOR (Thousands of workers)
Complete the following table with the quantity of labor supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will
result in a shortage or a surplus.
Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.
Labor Demanded
Labor Supplied
Wage
(Thousands of workers) (Thousands of workers) Shortage or Surplus?
$15.00
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.00.
Which of the following statements are true? Check all that apply.
O In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.
O If the minimum wage is set at $15.00, the market will not reach equilibrium.
O Binding minimum wages cause structural unemployment.
O In this labor market, a minimum wage of $11.50 would be binding.
WAGE (Dollars per hour)
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