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Problem 1. (Minimum Wage) (20 points): Given the following labor demand and supply curve Ls 10w Lo 80-10w where w is the wage rate, and Ls is quantity of labor suppplied and Lo is quantity demanded for labor. a) Suppose the state government imposes a minimum wage of $5, how many people keep their jobs after the mininmum wage policy is implemented? b) Who are winners and losers in this case? (3 points) c) What is the employerss gain or loss? Workers gain or loss? Change in total social welfare? (6 points)

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