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. (graph in image) In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling) 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.WageLabor DemandedLabor SuppliedPressure on Wages(Dollars per hour)(Thousands of workers)(Thousands of workers)12 8 True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. a. Trueb. False 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)201816141210004200SupplyDemand30 60 90 120 150 180 210 240 270 300LABOR (Thousands of workers)Graph Input ToolMarket for Labor in the Fast Food IndustryWage(Dollars per hour)Labor Demanded(Thousands ofworkers)174Labor Supplied(Thousands ofworkers)?126

Supply and demand refers to the link between the quantity of an good or service that producers want…

Answered: The following graph shows the labor…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.

(graph in image)

In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers.

Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling)

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.

Wage	Labor Demanded	Labor Supplied
(Dollars per hour)	(Thousands of workers)	(Thousands of workers)
12
8

True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market.

a. True

b. False

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
12
10
00
4
2
0
0
Supply
Demand
30 60 90 120 150 180 210 240 270 300
LABOR (Thousands of workers)
Graph Input Tool
Market for Labor in the Fast Food Industry
Wage
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
174
Labor Supplied
(Thousands of
workers)
?
126

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