The table gives the demand and supply schedules of teenage labor. Wage rate ($ per hour) Quantity demanded (hours per month) Quantity supplied (hours per month) 4 3000 1000 5 2500 1500 6 2000 2000 7 1500 2500 8 1000 3000 a.Calculate the equilibrium wage rate, the number of hours worked, and the quantity of unemployment. b.If a minimum wage for teenagers is set at $5 an hour, how many hours do they work and how many hours of teenage labor are unemployed? c.If a minimum wage is set at $7 an hour, how many hours do teenagers work and how many are unemployed?
The table gives the demand and supply schedules of teenage labor. Wage rate ($ per hour) Quantity demanded (hours per month) Quantity supplied (hours per month) 4 3000 1000 5 2500 1500 6 2000 2000 7 1500 2500 8 1000 3000 a.Calculate the equilibrium wage rate, the number of hours worked, and the quantity of unemployment. b.If a minimum wage for teenagers is set at $5 an hour, how many hours do they work and how many hours of teenage labor are unemployed? c.If a minimum wage is set at $7 an hour, how many hours do teenagers work and how many are unemployed?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 16SQ
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- The table gives the demand and supply schedules of teenage labor.
|
Wage rate ($ per hour) |
Quantity demanded (hours per month) |
Quantity supplied (hours per month) |
|
4 |
3000 |
1000 |
|
5 |
2500 |
1500 |
|
6 |
2000 |
2000 |
|
7 |
1500 |
2500 |
|
8 |
1000 |
3000 |
a.Calculate the equilibrium wage rate, the number of hours worked, and the quantity of
b.If a minimum wage for teenagers is set at $5 an hour, how many hours do they work and how many hours of teenage labor are unemployed?
c.If a minimum wage is set at $7 an hour, how many hours do teenagers work and how many are unemployed?
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