Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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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
Micro 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
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- $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_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_forwardI am not sure how to do this, The graph is confusing me.arrow_forwardThe following graph shows market for printers at equilibrium at price of $100 and quantity of 100. A. Determine the effects of a $90 price ceiling on quantity demanded, quantity supplied, and quantity exchanged in the market. B. As a result of this price ceiling there will be how much shortage or Surplus in this market? C. Show the effects of the price ceiling on the graph. You can draw the graph on paper and upload an image as a PNG, JPEG or PDF document. Please keep in mind that I can not open the files with HEIC extension. D. Show the deadweight loss of the price ceiling on your graph. P 130 120 110 100 S 90 80 70 60 50 40 50 60 70 80 90 100 110 120 Q Darrow_forward
- The following graph plots the supply and demand curves in the market for motor scooters. Use the black point (plus symbol) to indicate the equilibrium price and quantity of motor scooters. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) PRICE (Dollars per scooter) 300 270 240 210 180 150 120 60 30 0 0 Demand Supply 95 190 285 380 475 570 665 780 855 QUANTITY (Millions of scooters) Total surplus in this market is $ 950 million. Equilibrium A Consumer Surplus Producer Surplusarrow_forwardThe government sets a minimum wage above the current equilibrium wage. What effect does the minimum wage have on the market equilibrium? What are its effects on consumer surplus, producer surplus and total surplus? Who are the consumers and who are the producers?arrow_forwardMatch the following in terms of rent control and the example I covered in class A small shortage [ Choose ] a big shortage [ Choose ] would not occur a small surplus occurs in the long run due to inelastic supply occurs in the long run due to elastic supply occurs in the short run due to elastic supply occurs in the short run due to inelastic supply Question 18 Sketch out (on scratch paper) or else imagine a market for pizza with a linear demand curve that starts at zero Q-demanded when P =$12 and then intersects Supply at P = $8 Q = 100. Find the total consumer surplus for the equilibrium scenario. Just the $ amount but no $ sign. Question 19 For that same scenario, in the previous question. Assume the supply curve is linear and runs from $6 at Q = 0 to the equilibrium. Find the producer surplus associated with the 1st pizza only (again just give the # with no $ sign)arrow_forward
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