Question

The graph on the right shows a labor supply and labor demand curve. Illustrate the impact of an efficiency wage that pushes the wage to $9 per hour. 1.) Using the point drawing tool, place a point on the graph that illustrates the market-clearing wage and quantity of labor. Label your point Market clearing.' 2.) Using the point drawing tool, place a point on the graph that illustrates the quantity of labor demanded under an efficiency wage that results in a wage of $9 per hour. Label your point 'A.' Labor supply 3.) Using the point drawing tool, place a point on the graph that illustrates the quantity of labor supplied under an efficiency wage that results in a wage of $9 per hour. Label your point 'B.' Wage Carefully follow the instructions above and only draw the required objects. The quantity of labor supplied at the market-clearing wage is ___thousand, and the quantity of labor supplied at an efficiency wage of $9 is thousand. Labor demand 0 1 2 O A. 2; 9. O B. 5.5; 9. O C. 5.5; 2. OD. 9; 11. 3 4 5 6 7 8 9 10 11 12 13 14 Quantity of labor (thousands) The quantity of labor demanded at the market-clearing wage is an efficiency wage of $9 is thousand. __thousand, and the quantity of labor demanded at O A. 9; 11. OB. 5.5;2. O c. 2; 9. OD. 5.5; 9. unemployment equal to V Using your graph, the introduction of an efficiency wage of $9 per hour leads to thousand. frictional a market-clearing structural Click the graph, choose a tool in the palette and follow the instructions to create your graph.

Answer 1

Answer:

Labor supply Wage Labor demand o- 0 1 2 4 5 6 8 9 10 11 12 13 14 Quantity of labor thousands)

The quantity of labor supplied at the market-clearing wage is 5.5 thousand, and the quantity of labor supplied at an efficiency wage of $9 is 9 thousand.

Correct option: B] 5.5 , 9

The quantity of labor demanded at the market-clearing wage is 5.5 thousand, and the quantity of labor demanded at an efficiency wage of $9 is 2 thousand.

Correct option: B] 5.5 , 2

Using your graph, the introduction of an efficiency wage of $9 per hour leads to Structural unemployment equal to 7 thousand (9-2)