Consider the market for labor depicted by the demand and supply curves that follow.
Complete the following table with the quantity of labour supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will result in a shortage or a surplus.
Wage Labor Demanded Labor Supplied Shortage or surplus
(Dollars per hour) (Thousands of workers) (Thousands of workers)
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.
Which of the following statements are true? Check all that apply.
1. In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.
2. In this labour market, a minimum wage of $11.50 would be binding.
3. If the minimum wage is set at $15, the market will not reach equilibrium.
4. Binding minimum wages cause structural unemployment.
Consider the market for labor depicted by the demand and supply curves that follow.
Complete the following table with the quantity of labour supplied and demanded if the wage is set at $15.00. Then indicate whether this wage will result in a shortage or a surplus.
Wage Labor Demanded Labor Supplied Shortage or surplus
(Dollars per hour) (Thousands of workers) (Thousands of workers)
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $15.
Which of the following statements are true? Check all that apply.
1. In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium.
2. In this labour market, a minimum wage of $11.50 would be binding.
3. If the minimum wage is set at $15, the market will not reach equilibrium.
4. Binding minimum wages cause structural unemployment.
