Question: Wage ($) 20 S = MC CS 14 Potential Minimum Wage 10 -Loss from + DWL- Search 7 PS D = MB 70 100 130

Wage ($) 20 S = MC CS 14 Potential Minimum Wage 10 -Loss from + DWL- Search 7 PS D = MB 70 100 130 Labour Hours (thousands) Given the diagram above which describes a binding minimum wage, 1. Calculate the consumer surplus attained by the hiring firms after the minimum wage is in place. Write the dollar value of your answer in answer slot #21. 2. Calculate the producer surplus attained by the productive workers after the minimum wage is in place. Write the dollar value of your answer in answer slot #22. 3. Calculate the Potential Loss from Job Search after the minimum wage is in place. Write the dollar value of your answer in answer slot #23. 4. Calculate the Deadweight Loss due to the minimum wage. Write the dollar value of your answer in answer slot #24. 5. Calculate the change in consumer surplus due to the minimum wage if the original equilibrium occurred at a wage of $10 and quantity of labour of 100,000 hours per month. Write the dollar value of your answer in answer slot #25

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