11. Problems and Applications Q13Suppose that Parliament passes a law requiring employers to provide employees some benefit (such as dental care) that raises the cost of anemployee 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)2018161412108420Demand+0 1+23 4 5 6 7Quantity of Labour8Supply9 10New DemandNew SupplyEquilibrium Before LawSuppose 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) toindicate 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 TrueFalseSuppose 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 toNow 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

Employers and employees are made worse off by his law. True/FaseThe employer mandate will decrease…

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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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