Homework (Ch 06) 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 quota price floor For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labol price ceiling the direction of pressure exerted on wages in the absence of any price controls. tax Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 12 8 True or False: A minimum wage below $10 per hour is a binding minimum wage in this market. True O False

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Homework (Ch 06)
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
quota
price floor
For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labol price ceiling the direction of
pressure exerted on wages in the absence of any price controls.
tax
Wage
Labor Demanded
Labor Supplied
(Dollars per hour)
(Thousands of workers)
(Thousands of workers)
Pressure on Wages
12
8
True or False: A minimum wage below $10 per hour is a binding minimum wage in this market.
True
False
Transcribed Image Text:Homework (Ch 06) 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 quota price floor For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labol price ceiling the direction of pressure exerted on wages in the absence of any price controls. tax Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 12 8 True or False: A minimum wage below $10 per hour is a binding minimum wage in this market. True False
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)
Supply
16
Labor Demanded
(Thousands of
workers)
Labor Supplied
(Thousands of
workers)
406
210
14
12
10
8
6.
Demand
4
2
70
140 210 280 350 420 490 560 630 700
LABOR (Thousands of workers)
WAGE (Dollars per hour)
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) Supply 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) 406 210 14 12 10 8 6. Demand 4 2 70 140 210 280 350 420 490 560 630 700 LABOR (Thousands of workers) WAGE (Dollars per hour)
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