a) What is the equilibrium wage rate and equilibrium level of employment? A. $15 and 35 units of labor B. $20 and 15 units of labor C. $25 and 20 units of labor D. $35 and 10 units of labor b) If the government institutes a minimum wage rate at $30, the unemployment in the market will be: A. 10 units of labor. B. 15 units of labor. C. 20 units of labor. D. 25 units of labor. C) f the government fixes a minimum wage rate at $15, the unemployment in the market will be: A. 0 units of labor B. 10 units of labor C. 20 units of labor D. 30 units of labor

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
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a) What is the equilibrium wage rate and equilibrium level of employment?

  • A. $15 and 35 units of labor
  • B. $20 and 15 units of labor
  • C. $25 and 20 units of labor
  • D. $35 and 10 units of labor

b) If the government institutes a minimum wage rate at $30, the unemployment in the market will be:

  • A. 10 units of labor.
  • B. 15 units of labor.
  • C. 20 units of labor.
  • D. 25 units of labor.

C) f the government fixes a minimum wage rate at $15, the unemployment in the market will be:

  • A. 0 units of labor
  • B. 10 units of labor
  • C. 20 units of labor
  • D. 30 units of labor
The following figure shows the labor demand curve, LD1, and labor
supply curve LS1 in a market.
Wage ($)
„LS
45
40
IN
35
30
25
20
15
10
iLD,
5 10 15 20 25
30
35 40
Quantity of Labor (units)
Transcribed Image Text:The following figure shows the labor demand curve, LD1, and labor supply curve LS1 in a market. Wage ($) „LS 45 40 IN 35 30 25 20 15 10 iLD, 5 10 15 20 25 30 35 40 Quantity of Labor (units)
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