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Graph Input Tool

$(?)$

Market for Labor

Wage

$($Dollars per hour$)$

Labor Demanded

$($Thousands of

$1,050$

Labor Supplied

$150$ workers$)$

$($Thousands of workers$)$

Market for Labor

Wage $($Dollars per hour$)$

Labor Demanded $($Thousands of workers$)$

Complete the following table with the quantity of labor supplied and demanded if the wage is set at $$15,00.$ Then indicate whether this wag in a shortage or a surplus.

Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in $100$ for $100,000$ workers.

Labor Demanded Labor Supplied

Wage

$($Thousands of workers$)$

$($Thousands of workers$)$

Shortage or Surplus?

$$15\mathrm{.}00$

Suppose the federal government contemplates a new law that would create a national minimum wage of $$15\mathrm{.}00$ per hour.

Which of the following statements are true? Check all that apply.

In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.

If the minimum wage is set at $$15\mathrm{.}00,$ the market will not reach equilibrium.

In this labor market, a minimum wage of $$11\mathrm{.}50$ would be binding.

Binding minimum wages cause structural unemployment.