Question

CENGAGE MINDA MENU Homework (Ch 061 Graph Input Tool My Home Market for Labor in the Fast Food Industry courses Wage Labor Demanded 211 rowse Catalog artner Offers Options lege Success LABOR (Thousands of work Peer Center In this market, the brim hourly wage is and the virum quantity of laboris Suppose a senator introduces a alto legislate a minimum hourly wage of $6. This type of price control is called For each of the mapested in the following tabi, determine the quantity of labor demanded the quantity of labor supplied, and the direction of pressure certed on wages in the absence of any price control Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages True or False A minimum wage below $10 per hour is a binding minimum wage in this market

Answer 1

Market equiAbwium occuns at the poimt Whene intersests the Suppy Cuve Demand Cubve that, im eem the geph, it caun be Seem the marrket, the equikbnium haunty age is and equikbnium quamtity of Lalooin is $10 350 thousamd orkens I! semator Legislates the a mimimum wage 6/hour, them it will be called ftoor price Nage ate can't be lowened tall below this price floor ot G because cam't Per hour ind out the alemand and No we need to UPPy euation edemand avee Cuave Two poimts Om the Gi P)=(3 50, 10) and (G, )(430, 0) 2. P2-Pi Slote, mI IO 490-3 50 2- 14 0

The equatiom of demand Sumve p10 3 50) 14 14 P 140 Q+ 2350 Gp490 14 P TNO baimts the Supply Curue avre (D= (0.0):6. ,)(30, 10) 2 10 0 35 3.50 0 The eqvatiom of Supply Cunve P-PIm(a-a P-0 (-0) 35 35P G 35P

P 12/hour, tom the dlerand equation et, Gp490 At Ne - ( 14 X 12) 322 amd fram suPpli equntion we Jet, Gs 3512 4 20 $ 8/ haur, Gp At 490-(14x 8)= 370 G 35 x 8 280 Nages (4/ hour) Labon Demanded Lalor Paessune om ages Supplied (thausamds (otwonkers) (thousands of Nonkens 12 As Supplte 3 2 2 4 20 , there wilIL labor Sunplus lae a which wiLL Put DONMNarid phessune Gn Nages 3t0 280 Upwand phessuhe at that miimum Binding mimimum wage meam, Nage mafe market wiLL be unab Le to veach the egui lbnium. It s Set belaw 10/houn, e lo macket equi Lbaium paice, then i. e. lnding because, minimuM it womE act an Nage means age éte cam't tall bela that euel so, the maurkket wiLL earily openote at the the givem statement s Falae e2uibibnium poimt. Theve tore-