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Draw 3 diagrams to illustrate the effects of a wage subsidy on the labor market. Explain each diagram.
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- Whether the product market or the labor market, what happens to line equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply; and decrease in supply.Construct a supply and demand graph illustrating the effects of a $7.25 minimum wage . Use $6.00 as an equilibrium wage/ hourTrue or false: minimum wage always increases the welfare of workers. Explain your answer with a graph.
- A case study dicusses the federal minimum wage law.a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. using the supply and demand diagram of the market for unskilled labor, show the market wage,the number of workers who are employed, and the number of workers who are unemployed. Also show total payment to unskilled workers.b. Now suppose the secretary of labor proposes an increase in the minimum wage.What effect would this increase have on employment? does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither?c. What effect would this increase in the minimum wage have on unemployment? Does the change in unemployment depend on the elasticity of demand, the elasticity of supply, both elasticities or neither?d.if the demand for unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to the unskilled workers. would you answer…Price Quantity Demanded Quantity Supplied $10 100 0 $12 80 20 $14 60 40 $16 40 60 $18 20 80 $20 0 100 What will happen to the market condition (at the government price of $18) if the income is reduced significantly. (Show the work on the graph)What are the possible effects of minimum wage increase to the economy?
- Draw a supply-demand diagram representing the impact of a minimum wage in the labor market. What does economic theory predict about the change in employment with the introduction of or increase in a minimum wage? How does the prediction above vary with elasticity of labor supply and labor demand?DRAW THE PRICE CEILING CURVE AND EXPLAIN ALL DETAILS- DEFINITION, ECONOMIC RESULTS ETC.-Using an appropriate illustration explain the impact of the minimum wage in the labour market
- Summarize the evidence regarding the impact of the minimum wage on employment.Draw a graph of the market for U.S. labor. Label axes, curves, and equilibrium quantity and wages. (You do not have to use actual numbers) The supply of workers is highly, but not perfectly elastic. Make sure this elasticity is represented on your graph. Then, draw, on a separate graph, what would happen to that market if there was an influx of immigrant workers who are complements of U.S. native workers.A case study in this chapter discusses the federal minimum-wage law. Suppose the minimum wage is $7 per hour in the market for unskilled labor, as shown on the following graph. Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied at this minimum wage. Finally, use the green polygon (triangle symbols) to show the total wage payments to unskilled workers. Market EquilibriumMinimum Wage OutcomeLabor Supplied at Minimum WageTotal Wage Payments012345678910109876543210Wage (Dollars per hour)Quantity of Labor （Millions of workers)DemandSupplyMinimum Wage At the minimum wage of $7 per hour, the level of unemployment is million workers, and the total wage payments to workers are million. Now suppose the…
