Can you let me know if i got these correct. thanks The diagram to the right shows a market in which a pricefloor has been imposed. Identify the following (enter allvalues as integers).a. The deadweight loss is $ 35000b. The transfer of consumer surplus to producers is$ 35000c. Producer surplus with this price floor is $ 87500d. Consumer surplus with this price floor is $ 175004.503.50g2.501.500.50ABDFE35,00070,000QuantitySupplfloDemar Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in thelabor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for thequantity of labor (measured in thousands of workers) and W stands for the wage rate (measured in dollars per hour):Demand:LD = 100 - 3WLS = 7W.Supply:First, calculate the free-market equilibrium wage and quantity of labor.The competitive market equilibrium wage is $10 per hour. (Enter your response as an integer.)The competitive market equilibrium quantity of labor is 70 thousand workers. (Enter your response as an integer.)Now suppose the proposed minimum wage is $12. How large will the surplus of labor in this market be?With a minimum wage of $12 per hour, the surplus will be 20 thousand workers. (Enter your response as an integer.)

Answered: The diagram to the right shows a market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Concept explainers

Question

Can you let me know if i got these correct. thanks

The diagram to the right shows a market in which a price
floor has been imposed. Identify the following (enter all
values as integers).
a. The deadweight loss is $ 35000
b. The transfer of consumer surplus to producers is
$ 35000
c. Producer surplus with this price floor is $ 87500
d. Consumer surplus with this price floor is $ 17500
4.50
3.50
g2.50
1.50
0.50
A
B
D
F
E
35,000
70,000
Quantity
Suppl
flo
Demar

Suppose that you have been hired to analyze the impact on employment from the imposition of a minimum wage in the
labor market. Further suppose that you estimate the supply and demand functions for labor, where L stands for the
quantity of labor (measured in thousands of workers) and W stands for the wage rate (measured in dollars per hour):
Demand:
LD = 100 - 3W
LS = 7W.
Supply:
First, calculate the free-market equilibrium wage and quantity of labor.
The competitive market equilibrium wage is $10 per hour. (Enter your response as an integer.)
The competitive market equilibrium quantity of labor is 70 thousand workers. (Enter your response as an integer.)
Now suppose the proposed minimum wage is $12. How large will the surplus of labor in this market be?
With a minimum wage of $12 per hour, the surplus will be 20 thousand workers. (Enter your response as an integer.)

Expert Solution

Step 1: Introduction

1) A price floor is a minimum price set by the government that is higher than the market's equilibrium price for a particular commodity or service.

2) Competitive equilibrium occurs where demand equals supply. Binding minimum wage results in a surplus of workers as the labor supplied exceeds the labor demanded.

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions