Wages, Workers, and Management-End of Chapter Problem As of 2018, the federal minimum wage in the United States was $7.25 per hour. There have been proposals to increase the federal minimum wage to $15.00 per hour. Assume the labor market for minimum wage workers is in equilibrium at the current minimum wage of $7.25 and that Congress passes a law to increases the minimum wage to $15.00 per hour. Place the points on the graph to illustrate the price floor created by the minimum wage law. Wage ($ per hour) 21 2987654321 20 15 11 10 9 8 7 6 5 4 3 2 1 0 0 Minimum wage ●Labor supply Labor demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Quantity of workers (hundred thousand) As a result of the increase in minimum wage to $15 an hour, the quantity of labor supplied will be quantity of labor demanded, and there will be workers unemployed. the

Wages, Workers, and Management-End of Chapter Problem As of 2018, the federal minimum wage in the United States was $7.25 per hour. There have been proposals to increase the federal minimum wage to $15.00 per hour. Assume the labor market for minimum wage workers is in equilibrium at the current minimum wage of $7.25 and that Congress passes a law to increases the minimum wage to $15.00 per hour. Place the points on the graph to illustrate the price floor created by the minimum wage law. Wage ($ per hour) 21 2987654321 20 15 11 10 9 8 7 6 5 4 3 2 1 0 0 Minimum wage ●Labor supply Labor demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Quantity of workers (hundred thousand) As a result of the increase in minimum wage to $15 an hour, the quantity of labor supplied will be quantity of labor demanded, and there will be workers unemployed. the

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section20.3: Minimum-wage Laws

Problem 3QQ

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