PRICE Homework (Ch 4) WAGE RATE 1. The link between resource and product markets The following graph represents the labor market in the fast food industry, which consists mainly of high school and college students in a hypothetical economy. Suppose the government decides to impose a labor law that forbids employers from hiring students. Assume that this new legislation has no impact on the desire of students to remain in school. Assuming all other things are constant, show the effect of this legislation on the labor market for the fast food industry by shifting one or both of the curves in the following graph. Labor Market in the Fast Food Industry S Demand 52 Demand EMPLOYMENT IN FAST FOOD INDUSTRY Supply (?) The following graph shows the initial demand for and supply of fast food in this economy before the previously identified changes in the labor market. Show the effect of the legislation on the fast food market by shifting one or both of the curves. The Market for Fast Food QUANTITY OF FAST FOOD Supply Demand Demand Supply
PRICE Homework (Ch 4) WAGE RATE 1. The link between resource and product markets The following graph represents the labor market in the fast food industry, which consists mainly of high school and college students in a hypothetical economy. Suppose the government decides to impose a labor law that forbids employers from hiring students. Assume that this new legislation has no impact on the desire of students to remain in school. Assuming all other things are constant, show the effect of this legislation on the labor market for the fast food industry by shifting one or both of the curves in the following graph. Labor Market in the Fast Food Industry S Demand 52 Demand EMPLOYMENT IN FAST FOOD INDUSTRY Supply (?) The following graph shows the initial demand for and supply of fast food in this economy before the previously identified changes in the labor market. Show the effect of the legislation on the fast food market by shifting one or both of the curves. The Market for Fast Food QUANTITY OF FAST FOOD Supply Demand Demand Supply
Chapter11: Profit Maximization
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Transcribed Image Text:PRICE
WAGE RATE
Homework (Ch 4)
1. The link between resource and product markets
The following graph represents the labor market in the fast food industry, which consists mainly of high school and college students in a hypothetical
economy. Suppose the government decides to impose a labor law that forbids employers from hiring students. Assume that this new legislation has no
impact on the desire of students to remain in school.
Assuming all other things are constant, show the effect of this legislation on the labor market for the fast food industry by shifting one or both of the
curves in the following graph.
Labor Market in the Fast Food Industry
S₁
Demand
Demand
EMPLOYMENT IN FAST FOOD INDUSTRY
Supply
(?)
The following graph shows the initial demand for and supply of fast food in this economy before the previously identified changes in the labor market.
Show the effect of the legislation on the fast food market by shifting one or both of the curves.
The Market for Fast Food
QUANTITY OF FAST FOOD
Supply
Demand
Demand
Supply
?
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