Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 4, Problem 12SQ
To determine
The impact of minimum wage on the labor market.
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Students have asked these similar questions
The following graph shows the labor market in the fast-food industry in the
fictional town of Supersize City.
Labor Market Demand and Supply
WAGE (Dollars per hour)
20
10
Supply
Demand
+
0 90 180 270 360 450 540 630 720 810 900
quantity of labor demanded will be changed to
supplied will be changed to
price control.
LABOR (Thousands of workers)
Suppose a bill passed to increase a minimum hourly wage of $10 to $12. This
type of price control is called a
price floor
And the
I
thousands
the quantity of labor
of workers at this new
Suppose the university sets the same wage for all assistant professors in each department. Fill in the following table with the quantity demanded and
supplied for each type of assistant professor when the university sets the wage to $60,000 and $90,000, respectively.
University
Wage
Assistant Music Professors
Assistant Engineering Professors
(Dollars)
Quantity
Quantity
Shortage or
Quantity
Quantity
Shortage or
Demanded
Supplied
Surplus
Demanded
Supplied
Surplus
60,000
20
20
Neither
90,000
5
16
16
Neither
In summary, if the university sets a wage of $60,000 for all assistant professors in every department, which is equivalent to a price ceiling for
engineering professors, there will be
more v assistant engineering professors hired by the university than there would be if the university
paid assistant engineering professors their equilibrium wage. Similarly, if the university sets a wage of $90,000 for all assistant professors in every
department, which is equivalent to a price floor for…
Use the table below to answer the following question.
Quantity of
Quantity of
Rent
apartments
apartments
supplied
demanded
(dollars per
month)
(реr month)
(реr month)
200
20
100
300
40
80
400
60
60
500
80
40
600
100
20
Refer to the table, which gives the demand schedule and the supply schedule for the
apartment market in Anytown, Alberta. If a rent ceiling of $600 is imposed in the
apartment market, then
1) there is a shortage of 80 apartments.
2) there is a surplus of 80 apartments.
3) the supply of apartments will increase.
4) the supply of apartments will decrease.
5) the quantity of apartments supplied is 60 units.
Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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Similar questions
- The City imposes a minimum wage of $6 an hour for fast food workers when the market rate is $8. What effect does the minimum wage have on what fast food workers earn? No effect wages fall to $6 There is now a surplus of workers There is now a shortage of workersarrow_forwardSome cities impose rent control laws, which are price controls or limits on the price of rental accommodations (apartments, houses, and mobile homes). New York City alone had over two million rent-controlled apartments in the early 1950s, but only about 27,000 as of 2014. Show the effect of a rent control law on the equilibrium rental price and the quantity of N.Y. apartments. Show the amount of excess demand on your supply-and-demand diagram. Consider the market rental dwellings in New York illustrated in the figure to the right. Suppose the maximum rent with New York's laws is p. 1.) Using the point drawing tool, indicate the quantity of rental dwellings demanded and the market rent with the rent control laws. Label this point 'ed.' 2.) Using the point drawing tool, indicate the quantity of rental dwellings supplied and the market rent with the rent control laws. Label this point 'es.' Carefully follow the instructions above, and only draw the required objects. P, rent Q Q, quantity…arrow_forwardThe table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $350 a month, rent is $7 and the number of rooms rented is 4. The on-campus housing market is inefficient Rent (dollars per month) 250 275 300 325 350 375 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000 Nextarrow_forward
- How does an effective price ceiling affect the quantity demanded and the quantity supplied in a competitive market? Provide an example.arrow_forwardIn this market, the equilibrium hourly wage is ___, and the equilibrium quantity of labor is thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a . For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 8 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. True Falsearrow_forward$5 4 Price (per pound) N 3 0 2 4 6 8 10 12 14 16 18 20 Quantity Supplied (thousands of bushels per week) Price of corn in the market S3 Number of corn farmers S₁ Refer to the diagram above, which shows three supply curves for corn. A movement from point a to point b is caused by a change in the: Technology of corn farming S2 Price of resources used to produce corn Availability of resources used to produce cornarrow_forward
- Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for airplane travel. The accompanying table contains information on the supply of air travel. Airfare (price per ticket) Quantity supplied (millions of seats) $0 0 $175 350 $350 700 $400 800 $575 1,150 $750 1,500 Draw the supply curve and use it to calculate producer surplus last year and producer surplus this year. How did producer surplus change?arrow_forward3. Minimum wage legislation The following graph shows the labour market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool (? 20 Market for Labour in the Fast-Food Industry 18 I Wage (Dollars per hour) 16 + Labour Demanded (Thousands of workers) Labour Supplied (Thousands of workers) Supply 480 200 14 12 10 Demand 80 160 240 320 400 480 580 640 720 800 LABOUR (Thousands of workers) WAGE (Dollars per hour)arrow_forwardSuppose a minimum wage in the labor market is set above the equilibrium wage. Label the areas on your graph representing worker surpluses, firm surpluses, and deadweight loss. Identify the excess supply, and/or demand that exists in this market.arrow_forward
- Exercise 1: For each price per bushel in the table: • Indicate whether there is a shortage (quantity demanded > quantity supplied) or a surplus (quantity supplied > quantity demanded) • Indicate the amount of the shortage or surplus, • Draw a graph and indicate the equilibrium on the graph. What is the EQ price? Supply of Part Time Workers 35 30 25 20 15 10 5. 500 1000 1500 2000 2500 3000 Quantity of Part Time Hours Supply of Part Time Workers 35 30 25 20 15 10 1500 2000 2500 3000 500 1000 Quantity of Part Time Hours Quantity supplied Surplus or shortage Amount Quantity demanded-(B) Price per bushel $40 20 60 $32 30 50 $24 40 40 $16 50 30 $8 60 20 Hourly Ratesarrow_forwardThe demand and supply curves for the pizza market are shown in the graph below. Calculate the daily producer surplus. Instructions: Enter your response as a whole number. Price ($/slice) 6 5 4 ო 2 1 Market for pizza S D 0 4 8 12 16 20 24 28 Quantity (1,000s of slices/day) Producer surplus: $ per day.arrow_forwardI am not sure how to do this, The graph is confusing me.arrow_forward
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