Question: a If the minimum wage is set at $100, how many will be unemployed? b If the minimum wage increases from $100 to $125, how

a If the minimum wage is set at $100, how many will be unemployed?

b If the minimum wage increases from $100 to $125, how many additional workers will be unemployed?

c If the minimum wage is equal to $125, what is the quantity of labor supplied, the quantity of labor demanded, and number unemployed?

d Without a minimum wage, what is the equilibrium level of employment? Explain what happens to the level of employment if the minimum wage is equal to $125.

e At a minimum wage of $125, how much is the surplus of labor?

Wage 150 125 100 75 50 25 0 15 20 25 30

Wage 150 125 100 75 50 25 0 15 20 25 30 Labor supply Labor demand 35 40 Quantity of Labor

Step by Step Solution

★★★★★

3.55 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To answer these questions well analyze the labor market graph provided a If the minimum wage is set ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

The baggage limit for an airplane is set at 100 pounds per passenger. Thus, for an airplane with 200 passenger seats, there would be a limit of 20,000 pounds. The weight of the baggage of an...

If the minimum wage raises the market wage, w, but hours worked, L, fall as a result, total wage payments, wL, may rise or fall. Use supply and demand curves to show that either outcome is possible...

What is the quantity of labor employed, potential GDP, the real wage rate, and total labor income? The two tables set out information about the economy of Nautica. Use this information to work...

Final_Exam_Macro Question 1 (2 points) Purchasing-power panty theory does not hold at all times because many goods are not easily transported and the same goods produced in different countries may be...

TACKLE ALL PARTSP5 Problem 1 The Airfare Problem1. You are trying to get the cheapest airfare that you can. You just called up and found that the ticket home will cost $400, and it cannot be refunded...

ITS ECON . In the aftermath of the financial crisis of 2007 and 2008, many US policymakers have suggested that banks and other financial intermediaries should be subjected to tighter regulations. a....

need these fast 1. Which of the following is an example of a positive statement? O A. If this good is bad for you, you should not consume it. O B. If you consume this good, you will get sick. O C....

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

need this quick. Thanks 1. Which of the following is an example of a positive statement? O A. If this good is bad for you, you should not consume it. O B. If you consume this good, you will get sick....

Solve all questions. A market demand and supply functions are as follows: Qd = 500 - P/4, and Qs = P/2 - 100. For parts 2-5, use ONE graph. 1. Determine the equilibrium price and quantity. 2. Graph...

Tweedie Company reported the following in the long-term asset section of its balance sheet. They did not purchase or sell any Equipment during the period. Dec. 31, Year 2 Dec. 31, Year 1 Equipment,...

Using the selected account balances at December 31, 2011, for Parties, Etc. that follow, prepare an income statement for the year ended December 31, 2011. Show detail of net sales. The company uses...

Listen A positive alpha of the stock usually means the stock is . tc A ) undervalued, buy B ) properly valued, sell C ) overvalued, sell D ) overvalued, buy E ) undervalued, sell 3 of 1 9 questions...

Write down the total Hamiltonian for LiH 12+ Well label the relevant variables.

Provide a complete synthesis, choosing all necessary reagents from structures below. ONa OH

Which of the following samples has a larger mass? O 19.3 g of Au 8.92 10 atoms of Pt Identify the molecular geometry around the three selected atoms. Treat that atoms as the central atom for each...

Examine the cross-spot rates shown in Exhibit 2. Are there any triangular arbitrage opportunities among these currencies (assume deviations from theoretical cross rates of 5 points or less are...

14. A = (3,-1,11),B = (4,8,11),C =(0,2,3). If 'P' is the foot of the perpendicular from A on the join of 'B' and 'C' and Q =(1,4,3) then PQ = 1) V2 2) 2/2 3) 3/2 4) 4/2 15. If a,B.y are the angles...

Which factors are crucial to consider during the Basics of Estimation in the planning phase? Question 2Answer a. Required resources b. Potential risks c. Projected timeframe d. Both A and C

From each list tell me which two costs and which two benefits seem like the most important. (Give a brief summary of each and explain why they are the most important). The federal minimum wage was...

The Curse of Econ 101 When it comes to basic policy questions such as the minimum wage, introductory economics can be more misleading than it is helpful. In a rich, post-industrial society, where...

question b, how the minimum wage influence the unemployment and question c, when the bottom wage rates grew slower than top wage rates, how to influence the effect of the minimum wage on unemployment...

Read the attached text listing possible costs and benefits of the minimum wage. 1. Now, thinking about both lists in their entirety, are you in favor of a minimum wage? Briefly explain your...

1. Read the attached document listing possible costs and benefits of the minimum wage. 2. From each list tell me which two costs and which two benefits seem like the most important. (Give a brief...

Thinking about both lists (benefits and costs) in their entirety, why would you be or should you in favor of a minimum wage? Briefly explain your reasoning. Cost and Benefit Arguments: Benefit 1...