@ Currently, the Federal Minimum Wage is set at $7.25
per hour.
1) Suppose the market for unskilled labor is currently in
equilibrium and that the equilibrium wage in this market is
$7.25/hr. Draw a supply and demand diagram showing this market for
unskilled labor. Label the price axis (“Wage/Hour”), the quantity
of unskilled labor axis (“Quantity”), the demand curve (“D0”), the
supply curve (“S0”), the equilibrium wage ($7.25/ hr), and the
equilibrium quantity (“Q0”).
2) On the same diagram, show the effects of a new minimum wage set
at $15/hr. Label the quantity demanded and the quantity supplied at
$15/hr. Explain the effects of the new, higher minimum wage on the
unskilled labor market: Does this create a surplus, shortage, or
neither? Who, if anyone, does this new minimum wage help? Who, if
anyone, does it hurt?
3) Suppose that due to an economic downturn, many businesses reduce
their need for unskilled labor. Does this effect the supply of
unskilled labor or the demand for unskilled labor? Show the effects
of this shift on your diagram. Label this new curve. What has
happened to the size of the surplus/shortage discussed in part
C?
BE SPECIFIC!
@ Currently, the Federal Minimum Wage is set at $7.25 per hour. 1) Suppose the market...
Recently, the Federal Minimum Wage is set at $7.25 per hour. 1. Suppose the market for unskilled labor is currently in equilibrium and that the equilibrium wage in this market is $7.25/hr. Draw a supply and demand diagram showing this market for unskilled labor. Label the price axis (“Wage/Hour”), the quantity of unskilled labor axis (“Quantity”), the demand curve (“D0”), the supply curve (“S0”), the equilibrium wage ($7.25/ hr), and the equilibrium quantity (“Q0”). 2. On the same diagram, show...
1) Suppose the Federal current minimum wage, $7.50 per hour, is above the equilibrium wage in the market for unskilled labor. and that the equilibrium wage in this market is $7.25/hr. Draw a supply and demand diagram showing this market for unskilled labor. Label the price axis (“Wage/Hour”), the quantity of unskilled labor axis (“Quantity”), the demand curve (“D0”), the supply curve (“S0”), the equilibrium wage ($7.25/ hr), and the equilibrium quantity (“Q0”). 2) On the same diagram, show the...
Problems & Applications (Ch 06) Suppose the minimum wage is $6 per hour in the market for unskilled labor, as shown on the following graph Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied...
Suppose the market equilibrium wage is $13.00 an hour, and the minimum wage is currently $10.00 an hour. 1st attempt ♡ Hint X ♡ See Hint Deciding whether a price floor is binding or nonbinding is the first step in determining how it will affect the market. Does this increase in the minimum wage lead to a binding or a nonbinding price floor? (a) An increa looking for jobs. of people (b) The quantity of labor demanded would . ....
Short answer question: 17) There is considerable interest in whether the minimum wage rate contributes to teenage unemployment. a. Draw a demand and supply diagram for the unskilled labor market, and show the minimum wage on the graph (label all the components of the graph). b. Discuss the effects of a minimum wage on quantity demanded and quantity supplied of unskilled labor. c. Does minimum wage cause a shortage or surplus in this market? d W is aler gions s...
A case study in chapter 6 discusses the federal minimum-wage law. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number of workers who are unemployed. Also show the total wage payments to unskilled workers. Now suppose the secretary of labor proposes a decrease in the minimum wage (with the lower...
The United States of America’s national minimum wage is currently at $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources. Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the...
Market for Unskilled Labor Unskilled Wage Rate/Hour $2.00 S1.50 Labor Demand Curve 10 24 Number af Unskilled Warkers (millians) 2. The diagram drawn above shows the market for unskilled labor in which child workers may get hired, depending upon the circumstances. Currently, there are 10 million adult workers who are available for employment at the equilibrium wage rate of $2.00 per hour and no child worker is in the labor force in this market. (i) If the employers offer a...
The national minimum wage is $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources. Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the minimum wage from the current federal...
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. 0 125 250 375 500 625 750 875 1000 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0 WAGE (Dollars per hour) LABOR (Thousands of workers) Demand Supply Graph Input Tool Market for Labor Wage (Dollars per hour)...