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Labor Demanded Wage (Thousands of workers) $7.50 625 Labor Supplied (Thousands of workers) Shortage or Surplus? 375 Shortage Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $10.50 would be binding. If the minimum wage is set at $7.50, the market will still be able to reach equilibrium. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium. Binding minimum wages cause cyclical unemployment.

Labor Demanded Wage (Thousands of workers) $7.50 625 Labor Supplied (Thousands of workers) Shortage or Surplus? 375 Shortage Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $10.50 would be binding. If the minimum wage is set at $7.50, the market will still be able to reach equilibrium. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium. Binding minimum wages cause cyclical unemployment.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
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Labor Demanded Wage (Thousands of workers) $7.50 625 Labor Supplied (Thousands of workers) Shortage or Surplus? 375 Shortage Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $10.50 would be binding. If the minimum wage is set at $7.50, the market will still be able to reach equilibrium. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium. Binding minimum wages cause cyclical unemployment.
Transcribed Image Text:Labor Demanded Wage (Thousands of workers) $7.50 625 Labor Supplied (Thousands of workers) Shortage or Surplus? 375 Shortage Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $10.50 would be binding. If the minimum wage is set at $7.50, the market will still be able to reach equilibrium. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium. Binding minimum wages cause cyclical unemployment.
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