EconomicsSuppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employeeby $3 per hour. Assume that firms were not providing such benefits prior to the legislation.On the following graph, use the green line (triangle symbel) to show the effect this employer mandate has on the demand for labor.DemandSupply2018New Demand101412New Supply10Equilibrium Before LawEquilibrium After Law0 1 2510Quantity of Labor (Thousands)Suppose employees place a value on this benefit exactly equal to its cost.On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor.Suppose the wage is free to balance supply and demand.Use the black point (plus symbol) to indicate the eauilibrium wage and level of employment before this law, and use the grey point (star symbol) toindicate the equilibrium wage and level of employment after this law is implemented.Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) toindicate the equilibrium wage and level of employment after this law is implemented.True or False: Employers are made worse off but employees are made better off by this law.O TrueO FalseSuppose that, before the mandate, the wage in this market was $2 above the minimum wage.In this case, the wage rate with the employer mandate will be sv in the level of unemployment.| per hour, which will lead toin the level of employment andan increaseNow suppose that workers do not value the mandated benefit at all.a decreaseno changesWhich of the following statements are true under this circumstance? Check all that apply.O Employees are worse off than before the mandated benefit.O The supply curve of labor shifts to the left.O The equilibrium quantity of labor will remain unchanged.O Employers are neither better nor worse off than before the mandated benefit.OThe wage rate will decdine by less than $3.o ad sog) odeM

The act of working and obtaining a living from it is what is known as employment. It's possible to…

Suppose that, before the mandate, the wage in this market was $2 above the minimum wage. In this case, the wage rate with the employer mandate will be in the level of unemployment. Now suppose that workers do not value the mandated benefit at all. per hour, which will lead to Which of the following statements are true under this circumstance? Check all that apply. Employees are worse off than before the mandated benefit. The supply curve of labor shifts to the left. The equilibrium quantity of labor will remain unchanged. Employers are neither better nor worse off than before the mandated benefit. The wage rate will decline by less than $3. an increase a decrease no changes in the level of employment and

Suppose that, before the mandate, the wage in this market was $2 above the minimum wage. In this case, the wage rate with the employer mandate will be in the level of unemployment. Now suppose that workers do not value the mandated benefit at all. per hour, which will lead to Which of the following statements are true under this circumstance? Check all that apply. Employees are worse off than before the mandated benefit. The supply curve of labor shifts to the left. The equilibrium quantity of labor will remain unchanged. Employers are neither better nor worse off than before the mandated benefit. The wage rate will decline by less than $3. an increase a decrease no changes in the level of employment and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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