The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the graph. 1.a. The equilibrium wage and the number of food servers employed per day, respectively, are:1.b. Suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):1.c. Assume that both input and output markets are perfectly competitive. If one additional server increases the number of meals sold by four per day and each meal sells for $10, each additional food servers will be paid:1.d. If the equilibrium wage rate increased, the cause could be that either: The graph presented is a standard labor market supply-demand diagram. It illustrates the relationship between the wage rate (in dollars per day) and the quantity of labor (in thousands of servers per day).### Key Components:- **Axes**: - The vertical axis represents the wage rate, with values ranging from $0 to $8. - The horizontal axis stands for the quantity of labor, ranging from 0 to 25,000 servers per day.- **Curves**: - **Supply Curve (S)**: This upward-sloping line indicates that as wages increase, the quantity of labor supplied also increases. - **Demand Curve (D)**: This downward-sloping line signifies that higher wages result in a lower quantity of labor demanded.- **Equilibrium Point**: - The intersection of the supply and demand curves determines the market equilibrium. At this point, the wage rate is $4 per day, and the quantity of labor is 15,000 servers per day.This graph explains how supply and demand interact in the labor market to determine the equilibrium wage rate and quantity of labor.

Equilibrium exists when there is no change. In light of this, it is clear that an equilibrium price…

Answered: The graph below provides a supply 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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The graph below provides a supply and demand curve for food servers, complete 1a – 1d using the graph.

1.a. The equilibrium wage and the number of food servers employed per day, respectively, are:

1.b. Suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):

1.c. Assume that both input and output markets are perfectly competitive. If one additional server increases the number of meals sold by four per day and each meal sells for $10, each additional food servers will be paid:

1.d. If the equilibrium wage rate increased, the cause could be that either:

The graph presented is a standard labor market supply-demand diagram. It illustrates the relationship between the wage rate (in dollars per day) and the quantity of labor (in thousands of servers per day).

### Key Components:

- **Axes**:
- The vertical axis represents the wage rate, with values ranging from $0 to $8.
- The horizontal axis stands for the quantity of labor, ranging from 0 to 25,000 servers per day.

- **Curves**:
- **Supply Curve (S)**: This upward-sloping line indicates that as wages increase, the quantity of labor supplied also increases.
- **Demand Curve (D)**: This downward-sloping line signifies that higher wages result in a lower quantity of labor demanded.

- **Equilibrium Point**:
- The intersection of the supply and demand curves determines the market equilibrium. At this point, the wage rate is $4 per day, and the quantity of labor is 15,000 servers per day.

This graph explains how supply and demand interact in the labor market to determine the equilibrium wage rate and quantity of labor.

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