WAGE (Dollars per hour) 16 14 12 10 2 0 Supply Demand 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Which of the following statements are true? Check all that apply. Labor Demanded (Thousands of workers) 6.00 1,000 Labor Supplied (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $6.00. Then indicate whether this wage will rest In a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $6.00 1,000 600 Shortage Suppose the federal government contemplates a new law that would create a national minimum wage of $6.00 per hour. 600 In this labor market, a minimum wage of $8.50 would be binding. If the minimum wage is set at $6.00, the market will still be able to reach equilibrium. Binding minimum wages cause cyclical unemployment. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium.

WAGE (Dollars per hour) 16 14 12 10 2 0 Supply Demand 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Which of the following statements are true? Check all that apply. Labor Demanded (Thousands of workers) 6.00 1,000 Labor Supplied (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $6.00. Then indicate whether this wage will rest In a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? $6.00 1,000 600 Shortage Suppose the federal government contemplates a new law that would create a national minimum wage of $6.00 per hour. 600 In this labor market, a minimum wage of $8.50 would be binding. If the minimum wage is set at $6.00, the market will still be able to reach equilibrium. Binding minimum wages cause cyclical unemployment. In the absence of price controls, a shortage puts downward pressure on wages until they fall to the equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Draw this out to check your work) If the supply curve shifts to the left and the demand curve shifts to the right at the SAME TIME, equilibrium price will definitely increase and equilibrium quantity will Group of answer choices definitely increase. definitely decrease. definitely stay the same. either increase, decrease, or stay the same, depending on which curve shifts the farthest.
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