Problem 4: Price Interventions Suppose that, in the absence of government intervention, the supply and demand schedules for PA graduates is as follows: Quantity of Jobs Offered to PA majors (demand for PA labor) 2000 Salary Quantity of PA majors willing to work (supply their labor) $45,000 $40,000 $35,000 $30,000 $25,000 4000 3500 2500 3000 3000 2500 3500 2000 4000 a) Sketch the labor market for public affairs majors and indicate the equilibrium salary and quantity of jobs. b) Suppose that the government instituted a minimum starting salary for all college graduates, including public affairs majors, of $40,000. On your graph, indicate the impact of this minimum salary on the market for public affairs majors. Be sure to indicate the new quantity of jobs offered/supplied and the amount of any surplus (a.k.a. unemployment) or shortage of PA major labor.

Problem 4: Price Interventions Suppose that, in the absence of government intervention, the supply and demand schedules for PA graduates is as follows: Quantity of Jobs Offered to PA majors (demand for PA labor) 2000 Salary Quantity of PA majors willing to work (supply their labor) $45,000 $40,000 $35,000 $30,000 $25,000 4000 3500 2500 3000 3000 2500 3500 2000 4000 a) Sketch the labor market for public affairs majors and indicate the equilibrium salary and quantity of jobs. b) Suppose that the government instituted a minimum starting salary for all college graduates, including public affairs majors, of $40,000. On your graph, indicate the impact of this minimum salary on the market for public affairs majors. Be sure to indicate the new quantity of jobs offered/supplied and the amount of any surplus (a.k.a. unemployment) or shortage of PA major labor.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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