Graph Input ToolMarket for Labor20.0I Wage(Dollars per hour)2.5017.5SupplyLabor Supplied(Thousands ofworkers)Labor Demanded(Thousands ofworkers)15.087512512.510.07.5Demand5.02.5125250375500625750875 1000LABOR (Thousands of workers)Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will resultin a shortage or a surplus.Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.Labor SuppliedLabor Demanded(Thousands of workers)(Thousands of workers)Shortage or Surplus?Wage$7.50Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50.Which of the following statements are true? Check all that apply.WAGE (Dollars per hour) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will resultin a shortage or a surplus.Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.Labor SuppliedLabor Demanded(Thousands of workers)Shortage or Surplus?(Thousands of workers)Wage$7.50Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50.Which of the following statements are true? Check all that apply.If the minimum wage is set at $10.50, the market will not reach equilibrium.In this labor market, a minimum wage of $7.50 is binding.In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium.Binding minimum wages cause frictional unemployment.

Question
Asked Jan 27, 2020
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Graph Input Tool
Market for Labor
20.0
I Wage
(Dollars per hour)
2.50
17.5
Supply
Labor Supplied
(Thousands of
workers)
Labor Demanded
(Thousands of
workers)
15.0
875
125
12.5
10.0
7.5
Demand
5.0
2.5
125
250
375
500
625
750
875 1000
LABOR (Thousands of workers)
Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will result
in a shortage or a surplus.
Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.
Labor Supplied
Labor Demanded
(Thousands of workers)
(Thousands of workers)
Shortage or Surplus?
Wage
$7.50
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50.
Which of the following statements are true? Check all that apply.
WAGE (Dollars per hour)
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Graph Input Tool Market for Labor 20.0 I Wage (Dollars per hour) 2.50 17.5 Supply Labor Supplied (Thousands of workers) Labor Demanded (Thousands of workers) 15.0 875 125 12.5 10.0 7.5 Demand 5.0 2.5 125 250 375 500 625 750 875 1000 LABOR (Thousands of workers) Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Supplied Labor Demanded (Thousands of workers) (Thousands of workers) Shortage or Surplus? Wage $7.50 Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. WAGE (Dollars per hour)

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Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will result
in a shortage or a surplus.
Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers.
Labor Supplied
Labor Demanded
(Thousands of workers)
Shortage or Surplus?
(Thousands of workers)
Wage
$7.50
Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50.
Which of the following statements are true? Check all that apply.
If the minimum wage is set at $10.50, the market will not reach equilibrium.
In this labor market, a minimum wage of $7.50 is binding.
In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium.
Binding minimum wages cause frictional unemployment.
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Image Transcriptionclose

Complete the following table with the quantity of labor supplied and demanded if the wage is set at $7.50. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Supplied Labor Demanded (Thousands of workers) Shortage or Surplus? (Thousands of workers) Wage $7.50 Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $7.50. Which of the following statements are true? Check all that apply. If the minimum wage is set at $10.50, the market will not reach equilibrium. In this labor market, a minimum wage of $7.50 is binding. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. Binding minimum wages cause frictional unemployment.

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Expert Answer

Step 1

In this graph we can see that the wage rate is set at $2.5 per hour, as we extend the wage line (green), it cuts the supply curve where the labor supplied is 125,000 units. Similarly, it cuts the demand curve where the labor demanded is 875,000 units.

Economics homework question answer, step 1, image 1
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Step 2

Now, if the wage rate is $7.5 per hour we can further understand from the graph below:

Economics homework question answer, step 2, image 1
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Step 3

At this wage rate the labor demanded is where the wage line cuts the demand curve which is 625,000 units. Similarly, the labor supplied is where the wage line cuts the supply curve which ...

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