True or False: Employers and employees are made worse off by this law. True False Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the employer mandate will decrease the equilibrium wage rate from $10 per hour to $ and unemployment to Now suppose that workers do not value the mandated benefit at all. Which of the following statements are true under this circumstance? Check all that apply. The equilibrium quantity of labour will decline. The wage rate will decline by less than $4. Employees are worse off than before the mandated benefit. The supply curve of labour doesn't shift at all. per hour, causing employment to

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11. Problems and Applications Q13
Suppose that Parliament passes a law requiring employers to provide employees some benefit (such as dental care) that raises the cost of an
employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation.
On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labour.
Wage (Dollars per hour)
20
18
16
14
12
10
8
4
2
0
Demand
+
0 1
+
2
3 4 5 6 7
Quantity of Labour
8
Supply
9 10
New Demand
New Supply
Equilibrium Before Law
Suppose employees place a value on this benefit exactly equal to its cost.
Equilibrium After Law
(?)
Transcribed Image Text:11. Problems and Applications Q13 Suppose that Parliament passes a law requiring employers to provide employees some benefit (such as dental care) that raises the cost of an employee by $4 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbol) to show the effect this employer mandate has on the demand for labour. Wage (Dollars per hour) 20 18 16 14 12 10 8 4 2 0 Demand + 0 1 + 2 3 4 5 6 7 Quantity of Labour 8 Supply 9 10 New Demand New Supply Equilibrium Before Law Suppose employees place a value on this benefit exactly equal to its cost. Equilibrium After Law (?)
On the previous graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labour.
Suppose the wage is free to balance supply and demand.
Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to
indicate the equilibrium wage and level of employment after this law is implemented.
True or False: Employers and employees are made worse off by this law.
O True
False
Suppose that, before the mandate, the wage in this market was $3 above the minimum wage.
In this case, the employer mandate will decrease the equilibrium wage rate from $10 per hour to $
and unemployment to
Now suppose that workers do not value the mandated benefit at all.
Which of the following statements are true under this circumstance? Check all that apply.
✔The equilibrium quantity of labour will decline.
The wage rate will decline by less than $4.
✔Employees are worse off than before the mandated benefit.
✔The supply curve of labour doesn't shift at all.
✓ Employers are worse off than before the mandated benefit.
per hour, causing employment to
Transcribed Image Text:On the previous graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labour. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the equilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is implemented. True or False: Employers and employees are made worse off by this law. O True False Suppose that, before the mandate, the wage in this market was $3 above the minimum wage. In this case, the employer mandate will decrease the equilibrium wage rate from $10 per hour to $ and unemployment to Now suppose that workers do not value the mandated benefit at all. Which of the following statements are true under this circumstance? Check all that apply. ✔The equilibrium quantity of labour will decline. The wage rate will decline by less than $4. ✔Employees are worse off than before the mandated benefit. ✔The supply curve of labour doesn't shift at all. ✓ Employers are worse off than before the mandated benefit. per hour, causing employment to
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