The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. (graph in image) In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 12 8 True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. a. True b. False
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. (graph in image) In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor, c. tax, d. price ceiling) For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied Pressure on Wages (Dollars per hour) (Thousands of workers) (Thousands of workers) 12 8 True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market. a. True b. False
Chapter12: Labor Markets And Labor Unions
Section: Chapter Questions
Problem 1.3P
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Question
The following graph shows the labor market in the fast-food industry in the fictional town of Supersize City.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
(graph in image)
In this market, the equilibrium hourly wage is _____, and the equilibrium quantity of labor is ____ thousand workers.
Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a: (a. quota, b. price floor , c. tax, d. price ceiling )
For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls.
Wage
|
Labor Demanded
|
Labor Supplied
|
Pressure on Wages
|
---|---|---|---|
(Dollars per hour)
|
(Thousands of workers)
|
(Thousands of workers)
|
|
12 |
|
|
|
8 |
|
|
True or False: A minimum wage below $10 per hour is not a binding minimum wage in this market.
a. True
b. False
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