•Eq. wage=$10 • Eq. employment = 1200 • Min Wage $12 then Equilibrium employment =1100. • Unemployment as a result of minimum wage is 100 workers. • Total sector income prior to minimum wage is: • $10*1200 =$12,000 • Total sector income after minimum wage is:$12*1100 = $13,200 • Inelastic demand: Min Wage increases total income earned 16 14 12 10 8 6 2 500 1000 1500 2000 Labor -labor demand -labor supply 8:16 / 9:08 YouTube CC In our discussion of the effect of a minimum wage, even though implementing a minimum wage will reduce employment, it is possible for a minimum wage to raise the standard of living for all workers (sector workforce) affected by the minimum wage, if the labor demand function of those firms is Select one: a. elastic b. unitary elastic C. inelastic

•Eq. wage=$10 • Eq. employment = 1200 • Min Wage $12 then Equilibrium employment =1100. • Unemployment as a result of minimum wage is 100 workers. • Total sector income prior to minimum wage is: • $101200 =$12,000 • Total sector income after minimum wage is:$121100 = $13,200 • Inelastic demand: Min Wage increases total income earned 16 14 12 10 8 6 2 500 1000 1500 2000 Labor -labor demand -labor supply 8:16 / 9:08 YouTube CC In our discussion of the effect of a minimum wage, even though implementing a minimum wage will reduce employment, it is possible for a minimum wage to raise the standard of living for all workers (sector workforce) affected by the minimum wage, if the labor demand function of those firms is Select one: a. elastic b. unitary elastic C. inelastic

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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