3) The following data table contains the labor demand and labor supply schedules for low-skilled workers in San Francisco. Use the data to answer the questions below. Qd-labor demand W-wage $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 Qs-labor supply 210,000 200,000 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 a) Find the equilibrium wage and quantity of workers for low-skilled workers in San Francisco. Show the equilibrium graphically and include the wage intercepts.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter12: Labor Markets And Labor Unions
Section: Chapter Questions
Problem 1.3P
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b) Calculate the employee surplus and the firm surplus.
c) Assume that San Francisco voters pass a $17 dollar minimum wage ordinance. Show the effect graphically.
d) Assuming a $17 dollar minimum wage, how many workers get to keep their job?
e) Assuming a $17 dollar minimum wage, what is the new employee surplus number? Did employee surplus
increase or decrease?
f) Assuming a $17 dollar minimum wage, how much deadweight loss will be created?
Transcribed Image Text:b) Calculate the employee surplus and the firm surplus. c) Assume that San Francisco voters pass a $17 dollar minimum wage ordinance. Show the effect graphically. d) Assuming a $17 dollar minimum wage, how many workers get to keep their job? e) Assuming a $17 dollar minimum wage, what is the new employee surplus number? Did employee surplus increase or decrease? f) Assuming a $17 dollar minimum wage, how much deadweight loss will be created?
3) The following data table contains the labor demand and labor supply schedules for low-skilled workers in
San Francisco. Use the data to answer the questions below.
W-wage
$23.00
$22.00
$21.00
$20.00
$19.00
$18.00
$17.00
$16.00
$15.00
$14.00
$13.00
$12.00
$11.00
$10.00
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
Qd - labor demand
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
100,000
105,000
Qs - labor supply
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
a) Find the equilibrium wage and quantity of workers for low-skilled workers in San Francisco. Show the
equilibrium graphically and include the wage intercepts.
Transcribed Image Text:3) The following data table contains the labor demand and labor supply schedules for low-skilled workers in San Francisco. Use the data to answer the questions below. W-wage $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 Qd - labor demand 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000 Qs - labor supply 210,000 200,000 190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 a) Find the equilibrium wage and quantity of workers for low-skilled workers in San Francisco. Show the equilibrium graphically and include the wage intercepts.
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