ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423548
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 7.15PA
To determine
The effect of minimum wage on the unskilled labor market.
Concepts Introduced Wage Floor - It is the minimum wage or wage bracket established by law. It is the floor below which the prices are not allowed to fall in an industry or sector.
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(Figure: Labor Market) Refer to the labor market shown here. A minimum wage of $18 per hour is introduced. The implementation of the minimum wage leads to a _____ of _____ workers.
Table 28-4 The following data is about the labor
market in the city of Productionville. Wage
(Dollars per hour) Quantity Demanded (Units)
Quantity Supplied (Units) 8 6,000 16,000 7
9,000 14,000 6 12,000 12,000 5 15,000 10,000
4 18,000 8,000 Refer to Table 28-4. If the local
government imposed a minimum wage of $7 in
Productionville, how many people would be
unemployed? Group of answer choices 0 2,000
5,000 10,000
Table 28-4
The following data is about the labor market in the city of Productionville.
Wage
Quantity Demanded Quantity Supplied
(Dollars per
hour)
(Units)
(Units)
8
6,000
16,000
7
9,000
14,000
6
12,000
12,000
5
15,000
10,000
4
18,000
8,000
Refer to Table 28-4. If the local government imposed a minimum wage of $4 in Productionville, how many people would be unemployed?
О а. 3,000
O b. 10,000
О с.0
O d. 2,000
Chapter 4 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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