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Consider the labour market for unskilled workers in a hypothetical city as shown in the graph below, where L represents labour hours (in thousands) and W is the hourly wage. W 21 20 S 19- 18- 17- 16 15- Hourly Wage ($) D 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 L Labour Hours (in thousands) a. Suppose the labour market is perfectly competitive, and there is no restriction on the market so that wage is determined by market forces only. What will be the level of unemployment (unemployed hours) in equilibrium? [Unemployment refers to a situation where labour is willing to work at current market conditions (wage) but does not get work]. b. Now suppose that the government imposes a minimum wage of $15, which makes it illegal to offer or accept employment at any wage below $15. What will be level of unemployment under the minimum wage? c. Jason is willing to work at any wage above $7, Justin will work only if he gets at least $12 per hour. What do you predict their employment situation (employed, unemployed or not looking for work) was when there was no minimum wage? What is likely to happen to their employment situation under the minimum wage? d. Compared to the market equilibrium, identify the group/s that will benefit from the minimum wage and the group/s that will lose (be negatively affected by the policy). Restrict attention to the economic agents represented in this graph and the direct effect of the policy considering only the information provided