Consider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 21 18 15 12 3 0 0 Supply Demand 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) 3.00 Which of the following statements are true? Check all that apply. 1,050 Labor Supplied (Thousands of workers) 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? $9.00 Complete the following table with the quantity of labor supplied and demanded if the wage is set at $9.00. Then indicate whether this wage will result in a shortage or a surplus. Suppose the federal government contemplates a new law that would create a national minimum wage of $9.00 per hour. Ⓒ □ If the minimum wage is set at $12.50, the market will not reach equilibrium. In this labor market, a minimum wage of $9.00 is binding. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. Binding minimum wages cause frictional unemployment. 150
Consider the labor market defined by the supply and demand curves plotted on the following graph. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. WAGE (Dollars per hour) 21 18 15 12 3 0 0 Supply Demand 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Labor Demanded (Thousands of workers) 3.00 Which of the following statements are true? Check all that apply. 1,050 Labor Supplied (Thousands of workers) 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? $9.00 Complete the following table with the quantity of labor supplied and demanded if the wage is set at $9.00. Then indicate whether this wage will result in a shortage or a surplus. Suppose the federal government contemplates a new law that would create a national minimum wage of $9.00 per hour. Ⓒ □ If the minimum wage is set at $12.50, the market will not reach equilibrium. In this labor market, a minimum wage of $9.00 is binding. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. Binding minimum wages cause frictional unemployment. 150
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter26: Factor Markets: With Emphasis On The Labor Market
Section: Chapter Questions
Problem 16QP
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Transcribed Image Text:Consider the labor market defined by the supply and demand curves plotted on the following graph.
Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator.
WAGE (Dollars per hour)
24
21
18
3
0
Supply
Demand
150 300 450 600 750 900 1050 1200
LABOR (Thousands of workers)
Graph Input Tool
Market for Labor
Wage
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
3.00
1,050
Labor Supplied
(Thousands of
workers)
Complete the following table with the quantity of labor supplied and demanded if the wage is set at $9.00. Then indicate whether this wage will result
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?
$9.00
Suppose the federal government contemplates a new law that would create a national minimum wage of $9.00 per hour.
150
Which of the following statements are true? Check all that apply.
□ If the minimum wage is set at $12.50, the market will not reach equilibrium.
In this labor market, a minimum wage of $9.00 is binding.
In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium.
Binding minimum wages cause frictional unemployment.
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