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The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= $8 b. Q*= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? a. W*= $12 b. Q*= 36 ABC c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? What has happened to consumer surplus (remember this is for the firms/employers in this question)? f. What has happened to producer surplus (this is the workers in this question)? е. i. ii. It has gone up. It has gone down. It has stayed the same. iv. ii. We don't have enough information to know.

The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= $8 b. Q*= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? a. W*= $12 b. Q*= 36 ABC c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? What has happened to consumer surplus (remember this is for the firms/employers in this question)? f. What has happened to producer surplus (this is the workers in this question)? е. i. ii. It has gone up. It has gone down. It has stayed the same. iv. ii. We don't have enough information to know.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer questions c-f. 

Consider the market for low-skilled labor where firms demand labor and workers supply labor. The price of low-skilled labor is the hourly wage paid to the workers in dollars, W. The demand and supply curves are: D (W)= 60 – 2W and S(W) = 30 + W (These give the number of hours demanded/supplied each week in millions, i.e., if S(W)=30 this means there are 30 million hours supplied at that hourly wage. But I will assume your answers are in millions so you don't need to keep writing millions.) The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= $8 b. Q*= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? ABC a. W*= $12 b. Q*= 36 c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? e. What has happened to consumer surplus (remember this is for the firms/employers in this question)? What has happened to producer surplus (this is the workers in this question)? f. It has gone up. It has gone down. It has stayed the same. We don't have enough information to know. i. i. iii. iv.
Transcribed Image Text:Consider the market for low-skilled labor where firms demand labor and workers supply labor. The price of low-skilled labor is the hourly wage paid to the workers in dollars, W. The demand and supply curves are: D (W)= 60 – 2W and S(W) = 30 + W (These give the number of hours demanded/supplied each week in millions, i.e., if S(W)=30 this means there are 30 million hours supplied at that hourly wage. But I will assume your answers are in millions so you don't need to keep writing millions.) The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will be the new equilibrium wage and quantity? a. W*= $8 b. Q*= 38 b. Suppose the Democrats implement a new federal minimum wage of W=$12. What will be the new equilibrium wage and quantity? ABC a. W*= $12 b. Q*= 36 c. Quantity represents employment, then what has happened to unemployment (increased/decreased/same)? d. What term best describes the effect of this policy on social surplus? e. What has happened to consumer surplus (remember this is for the firms/employers in this question)? What has happened to producer surplus (this is the workers in this question)? f. It has gone up. It has gone down. It has stayed the same. We don't have enough information to know. i. i. iii. iv.
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