Question

The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly Graph Input Tool Market for Labor in the Fast Food Industry 20 T 18 16 14 12 10 (Dollars per hour) Labor Demanded workers) (abors Dregmanded 406 labors Supled2 406 210 Thousands of warkers) 0 7O 140 210 280 350 420 490 560 630 700 LABOR (Thousands of workers) thousand workers. In this market, the equilabrium hourly wage is , and the equilibrium quantity of labor is O Type here to search 問白

Answer 1

Answer to blank 1: $10

Answer to blank 2: 250

Answer to blank 3: Price floor

Explanation:

When minimum wage is below equilibrium wage, it is called price floor.

Wage($) LD(Thousands) LS(Thousands) Pressure on wages

8 350 225 upward

12 100 275 downward

Ans: True

Explanation:

If minimum wage wage set above equilibrium wage, it is called binding.