Problem 2 Minimum Wage: Many retail workers operate in a competitive labor market. The labor supply is Q5 = 10W (where W is the price of labor measured by the hourly wage) and the demand for labor is Q0 = 240 - 20% Q measures the quantity of labor hired (in thousands of hours). a) What is the equilibrium wage and quantity of retail labor working in equilibrium? b) If the government passes a minimum wage of $9 per hour, what will be the new quantity of labor hired? Will there be an excess demand or excess supply of labor? How large? c) What is the deadweight loss of a $9 minimum wage? d) How much better off does the $9 minimum wage make retail workers (in other words, how much does producer surplus change), and how much worse off are employers? e) How do your answers to (c) and (d) change if the minimum wage is set at $11 rather than $9? f) Compared to your results above would your predictions for the number of hired hours and the amount of the deadweight loss be lower or greater if the demand for retail workers is very inelastic (less elastic than QD = 240 - 20L). (No math necessary.)