Consider the market for workers in a cafe.Labor demand equation: Ld=40-2*wLabor supply equation: Ls=4*w-32w=hourly wage; Ls and Ld are in numbers of workers1. Suppose that there is a rapid growth in the availability of self-service ordering systems. How does that affect the market for labor in Café Alice? NJ imposed a minimum wage of $13 per hour in Jan. 2022. 2. How did this policy affect the market for labor in Café Alice, i.e, is this market in equilibrium, and was there a surplus or a shortage of workers? 3. Suppose that the minimum wage in NJ increases to $15 in 2024. Will there be workers who would like to work for Café Alice in NJ, but the Café will not be willing to hire them?Will the level of unemployment increase or decrease compared to 2022 when the minimum wage was $13 per hour? W$859$10$11$12$13$14$15$16$17$18$19$20Ld24222018161412108642ONLELaLaLao0 - 04812162024283236404448

The labour market is a critical subject in both micro and macroeconomics because it has the capacity…

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ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the market for workers in a cafe.

Labor demand equation: Ld=40-2*w

Labor supply equation: Ls=4*w-32

w=hourly wage; Ls and Ld are in numbers of workers

1. Suppose that there is a rapid growth in the availability of self-service ordering systems. How does that affect the market for labor in Café Alice?

NJ imposed a minimum wage of $13 per hour in Jan. 2022.
2. How did this policy affect the market for labor in Café Alice, i.e, is this market in equilibrium, and was there a surplus or a shortage of workers?

3. Suppose that the minimum wage in NJ increases to $15 in 2024.
Will there be workers who would like to work for Café Alice in NJ, but the Café will not be willing to hire them?
Will the level of unemployment increase or decrease compared to 2022 when the minimum wage was $13 per hour?

W
$8
59
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
Ld
24
22
20
18
16
14
12
10
8
6
4
2
ON
LE
LaLaLa
o
0 - 0
4
8
12
16
20
24
28
32
36
40
44
48

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