PRICE CONTROLS - MINIMUM WAGE WORKSHEETBelow, you are provided with the demand and supply curves for labor. You will usethis information to analyze the effect of a minimum wage set above the equilibriumhourly wage. You will identify whether the minimum wage creates a shortage or asurplus of labor, and identify the size of this shortage or surplus. You will alsoexamine the changes in consumer surplus, producer surplus, and total surplusbefore and after the minimum wage is introduced.$14 -......Supply$12$10$8$6$4 .Demand -$25001,0001,500 2,000 2,500 3,000 3,500Hours of WorkPart 1: Identify the equilibrium hourly wage and the number of hours of labor thatare transacted at that hourly wage.Part 2: Identify the amount of consumer surplus that is generated when the hourlywage is the equilibrium wage.Part 3: Identify the amount of producer surplus that is generated when the hourlywage is the equilibrium wage.15Part 4: Identify the amount of total surplus that is generated when the hourly wageis the equilibrium wage.Part 5: Suppose that the government imposes an hourly minimum wage of $10.What is the number of hours demanded at this wage? Hours supplied? Part 6: Suppose that the government imposes an hourly minimum wage of $10. Howmany hours of labor are transacted? How much unemployment is generated by thisminimum wage?Part 7: Suppose that the government imposes an hourly minimum wage of $10.Identify the amount of consumer surplus that is generated by this market after theimposition of this minimum wage.Part 8: Suppose that the government imposes an hourly minimum wage of $10.Identify the amount of producer surplus that is generated by this market after theimposition of this minimum wage.Part 9: Suppose that the government imposes an hourly minimum wage of $10.Identify the amount of total surplus that is generated by this market after theimposition of this minimum wage.Part 10: Suppose that the government imposes an hourly minimum wage of $10.Identify the amount of deadweight loss associated with this minimum wage.16000DashboardCalendarTo DoNotificationsInbox

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Part 1: Identify the equilibrium hourly wage and the number of hours of labor that are transacted at that hourly wage. Part 2: Identify the amount of consumer surplus that is generated when the hourly wage is the equilibrium wage. Part 3: Identify the amount of producer surplus that is generated when the hourly wage is the equilibrium wage.

Part 1: Identify the equilibrium hourly wage and the number of hours of labor that are transacted at that hourly wage. Part 2: Identify the amount of consumer surplus that is generated when the hourly wage is the equilibrium wage. Part 3: Identify the amount of producer surplus that is generated when the hourly wage is the equilibrium wage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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