Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 6, Problem 3SPA
To determine
Equilibrium wage rate and equilibrium hours worked
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Students have asked these similar questions
Wage Rate
(dollars per hour) (millions of hours)
Quantity Supplied Quantity Demanded
(millions of hours)
30
60
50
40
40
50
4
30
60
3
20
Refer to the below table. What
70
is the level of unemployment in millions of hours if the minimum wage is set at $3
per hour?
1) 70
2) 40
3) 30
4) 20
5) Zero
The table gives the demand and supply schedules of teenage labor.
Wage rate ($ per hour)
Quantity demanded (hours per month)
Quantity supplied (hours per month)
4
3000
1000
5
2500
1500
6
2000
2000
7
1500
2500
8
1000
3000
a.Calculate the equilibrium wage rate, the number of hours worked, and the quantity of unemployment.
b.If a minimum wage for teenagers is set at $5 an hour, how many hours do they work and how many hours of teenage labor are unemployed?
c.If a minimum wage is set at $7 an hour, how many hours do teenagers work and how many are unemployed?
5. Minimum-wage laws and unemployment
Consider the market for labor depicted by the demand and supply curves that follow.
Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator.
Graph Input Tool
Market for Labor
20.0
Wage
(Dollars per hour)
17.5
Supply
2.50
Labor Demanded
(Thousands of
workers)
Labor Supplied
(Thousands of
workers)
15.0
875
125
12.5 +
10.0
7.5
Demand
5.0
2.5
125
250
375 500 625 750 875 1000
LABOR (Thousands of workers)
Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. 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?
$7.50
Suppose a senator considers introducing a bill to legislate a minimum…
Chapter 6 Solutions
Macroeconomics
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - Prob. 1RQ
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5. The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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