Chapter 4, Problem 11P

To determine

Concept introduction:

Demand supply analysis: This analysis is represented by a point of intersection of the two curves. Demand and supply are the two curves. The point where the customer’s demand meets with the product supplied in the market is known as the market equilibrium.

Answer:

The number of unemployed workers will be determined as under-

1. At the minimum wage rate of $11 per hour, the quantity of workers employed is 102. Considering the total of 106 employees as given in the graph, the number of unemployed people will be 4.
2. At the minimum wage rate of $9 per hour, the quantity of workers employed is 98. Considering the total of 106 employees as given in the graph, the number of unemployed people will be 8.
3. At the minimum wage rate of $12 per hour, the quantity of workers employed is 104. Considering the total of 106 employees as given in the graph, the number of unemployed people will be 2.

Explanation:

The supply curve in the given figure denotes the number of people employed. Thus, the number of people employed at each wage rate is the point that falls on the supply curve at the mentioned wage rate.

The number of employed people can be explained as under −

1. At the minimum wage rate of $11 per hour, the number of workers employed is 102.
2. At the minimum wage rate of $9 per hour, the number of workers employed is 98
3. At the minimum wage rate of $12 per hour, the number of workers employed is 104.

Considering the total of 106 employees as given in the graph, the number of employed people will be deducted from the total number of employees to obtain the number of unemployed people as under-

1. Where the number of employed people is 102, the number of unemployed people will be 4.
2. Where the number of employed people is 98, the number of unemployed people will be 8.
3. Where the number of employed people is 104, the number of unemployed people will be 2.