WAGE (Dollars per hour) 15 12 0 0 400 Labor Supply 200 600 800 QUANTITY (Thousands of workers) Labor Demand Unemployment Rate = 1000 Graph Input Tool Unemployed Labor Force Labor Market × 100 Wage Rate (Dollars per hour) Labor Demanded (Thousands of workers) Surplus Labor (Thousands of workers) Labor Demand Shifters If the wage is not allowed to fall below $11.70 per hour, the size of the unskilled labor force is workers are considered unemployed. Tax Credit (Dollars per hour) The unemployment rate is defined as the percentage of unemployed workers in the labor force: $11.7 220 Suppose the minimum wage in this economy is $11.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. 560 0 Labor Supplied (Thousands of workers) 780 workers, and unskilled
WAGE (Dollars per hour) 15 12 0 0 400 Labor Supply 200 600 800 QUANTITY (Thousands of workers) Labor Demand Unemployment Rate = 1000 Graph Input Tool Unemployed Labor Force Labor Market × 100 Wage Rate (Dollars per hour) Labor Demanded (Thousands of workers) Surplus Labor (Thousands of workers) Labor Demand Shifters If the wage is not allowed to fall below $11.70 per hour, the size of the unskilled labor force is workers are considered unemployed. Tax Credit (Dollars per hour) The unemployment rate is defined as the percentage of unemployed workers in the labor force: $11.7 220 Suppose the minimum wage in this economy is $11.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. 560 0 Labor Supplied (Thousands of workers) 780 workers, and unskilled
Chapter11: Labor Markets
Section: Chapter Questions
Problem 1SQP
Related questions
Question
![WAGE (Dollars per hour)
15
Labor Supply
X
Labor Demand
3
10
200
400
600
QUANTITY (Thousands of workers)
12
6
0
0
800
1000
Unemployment Rate
Graph Input Tool
Labor Market
Unemployed
x 100
Labor Force
Wage Rate
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
Surplus Labor
(Thousands of
workers)
Labor Demand Shifters
Tax Credit
(Dollars per hour)
If the wage is not allowed to fall below $11.70 per hour, the size of the unskilled labor force is
workers are considered unemployed.
The unemployment rate is defined as the percentage of unemployed workers in the labor force:
$11.7
220
560
0
Suppose the minimum wage in this economy is $11.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing
wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the
prevailing wage.
Labor Supplied
(Thousands of
workers)
(?)
workers, and
780
unskilled](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe31eec36-93d9-4d07-bc7e-56350ebdf77f%2F184b018a-f27a-44ec-be8e-e101ad41fedd%2Fkcrjqr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:WAGE (Dollars per hour)
15
Labor Supply
X
Labor Demand
3
10
200
400
600
QUANTITY (Thousands of workers)
12
6
0
0
800
1000
Unemployment Rate
Graph Input Tool
Labor Market
Unemployed
x 100
Labor Force
Wage Rate
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
Surplus Labor
(Thousands of
workers)
Labor Demand Shifters
Tax Credit
(Dollars per hour)
If the wage is not allowed to fall below $11.70 per hour, the size of the unskilled labor force is
workers are considered unemployed.
The unemployment rate is defined as the percentage of unemployed workers in the labor force:
$11.7
220
560
0
Suppose the minimum wage in this economy is $11.70 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing
wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the
prevailing wage.
Labor Supplied
(Thousands of
workers)
(?)
workers, and
780
unskilled
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