Question: Draw a graph for a labor market with a perfectly inelastic (vertical) labor demand curve and an upward-sloping labor supply curve. Label the equilibrium quantity

Draw a graph for a labor market with a perfectly inelastic (vertical) labor demand curve and an upward-sloping labor supply curve. Label the equilibrium quantity of labor L_e and the equilibrium wage rate W_e. Draw a dotted line at the level of a minimum wage rate set above the equilibrium wage rate. Label the minimum wage W_m and the quantity of labor supplied at the minimum wage L_m. Label the distance along the horizontal axis that represents unemployment.

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