Question

% 6.2 Study Plan Problem 4 Question Help The table gives the demand and supply of teenage labor. The minimum wage for teenagers is $8 an hour. How many hours are employed? ge rate Quantity demanded Quantity supplied (dollars per hour) (hours per month) 2,500 1,500 2,000 2,000 1,500 2,500 1,000 3,000 If the demand for teenage labor increases by 500 hours a month, what is the wage rate and how many hours are unemployed? When the minimum wage for teenagers is $8 an hour, the teenagers work hours a month and hours a month are unemployed.

plz show how to solve it

Answer 1

Answer

1500

1000

2000

500

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wage =$8

quantity demanded =1500 and quantity supplied =2500

the equilibrium at minimum wage is the quantity demanded

Q=1500

at the minimum wage the teenage work 1500 hours

Qd<Qs so there is a surplus or unemployed

unemployed=Qs-Qd=2500-1500=1000 hours

and 1000 hours a month are unemployed

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Now the demand increases by 500 hours at each wage

so at wage =$8

Qd=1500+500=2000 hours

Now the employed teenage hours =2000

unemployed =2500-2000=500 hours

unemployed teenage hours =500