The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Supply 16 12 Demand 0 90 180 270 380 450 540 630 720 810 900 LABOR (Thousands of workers) WAGE (Dollars per hour) 20 18 NOY 0 In this market, the equilibrium hourly wage is $ Graph Input Tool Wage (Dollars per hour) 8 12 Market for Labor in the Fast Food Industry Labor Demanded (Thousands of workers) Wage (Dollars per hour) Labor Demanded (Thousands of workers) and the equilibrium quantity of labor is 6 900 Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a Labor Supplied (Thousands of workers) Labor Supplied (Thousands of workers) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. thousand workers. Pressure on Wages 378 True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. (Economists call minimum wage that prevents the labor market from reaching equilibrium a binding minimum wage.)
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Supply 16 12 Demand 0 90 180 270 380 450 540 630 720 810 900 LABOR (Thousands of workers) WAGE (Dollars per hour) 20 18 NOY 0 In this market, the equilibrium hourly wage is $ Graph Input Tool Wage (Dollars per hour) 8 12 Market for Labor in the Fast Food Industry Labor Demanded (Thousands of workers) Wage (Dollars per hour) Labor Demanded (Thousands of workers) and the equilibrium quantity of labor is 6 900 Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a Labor Supplied (Thousands of workers) Labor Supplied (Thousands of workers) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. thousand workers. Pressure on Wages 378 True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. (Economists call minimum wage that prevents the labor market from reaching equilibrium a binding minimum wage.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
WAGE (Dollars per hour)
20
18
16
14
22 4
6
2
0
0
In this market, the equilibrium hourly wage is
90 180 270 380 450 540 830 720 810 900
LABOR (Thousands of workers)
Wage
(Dollars per hour)
8
Supply
12
Demand
True
O False
Graph Input Tool
Market for Labor in the Fast Food Industry
Labor Demanded
(Thousands of workers)
Wage
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a
, and the equilibrium quantity of labor is
For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of
pressure exerted on wages in the absence of any price controls.
6
900
Labor Supplied
(Thousands of workers)
Labor Supplied
(Thousands of
workers)
thousand workers.
Pressure on Wages
378
True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. (Economists call a minimum wage that prevents
the labor market from reaching equilibrium a binding minimum wage.)
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