Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 4, Problem 32P
Imagine that to preserve the traditional way of life in small fishing villages, at government decides to impose a
- Using the demand and supply framework, predict the effects on the price, quantity demanded, and quantity supplied.
- With the enactment of this price floor for fish, what are some of the likely unintended consequences in file market?
- Suggest some policies other than the price floor to make it possible for small fishing villages to continue.
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The following graph shows the labour market in the fast-food industry in the fictional town of Supersize City.
Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
Market for Labour in the Fast-Food Industry
20
I Wage
(Dollars per hour)
18
6
Supply
16
Labour Demanded
(Thousands of
workers)
Labour Supplied
(Thousands of
workers)
700
210
14
Demand
70 140 210 280 350 420 490 560 630 700
LABOUR (Thousands of workers)
workers.
In this market, the equilibrium hourly wage is $
, and the equilibrium quantity of labour is
WAGE (Dollars per hour)
3. Minimum wage legislation
The following graph shows the labour market in the fast-food industry in the fictional town of Supersize City.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
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20
Market for Labour in the Fast-Food Industry
18
I Wage
(Dollars per hour)
16 +
Labour Demanded
(Thousands of
workers)
Labour Supplied
(Thousands of
workers)
Supply
480
200
14
12
10
Demand
80 160 240 320 400 480 580 640 720 800
LABOUR (Thousands of workers)
WAGE (Dollars per hour)
Graph Input Tool
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Market for Labor in the Fast Food Industry
20
I Wage
(Dollars per hour)
18
6.
16
Labor Demanded
(Thousands of
workers)
Labor Supplied
(Thousands of
workers)
Supply
232
14
12
10
Demand
4
40
80
120 160 200 240 280 320 360 400
LABOR (Thousands of workers)
WAGE (Dollars per hour)
Chapter 4 Solutions
Principles of Economics 2e
Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - In the labor market, what causes a movement along...Ch. 4 - Why is a living wage considered a price floor?...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - In the financial market, what causes a movement...Ch. 4 - If a usury law limits interest rates to no more...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Which of the following changes in the financial...Ch. 4 - Identify the most accurate statement. A price...Ch. 4 - A price ceiling will have the largest effect:...
Ch. 4 - Select the correct answer. A price floor will...Ch. 4 - Select the correct answer. A price ceiling will...Ch. 4 - What is die price commonly called in the labor...Ch. 4 - Are households demanders or suppliers in the goods...Ch. 4 - Name some factors that can cause a shift in the...Ch. 4 - Name some factors that can cause- a shift in the...Ch. 4 - How do economists define equilibrium in financial...Ch. 4 - What would be a sign of a shortage in financial...Ch. 4 - Would usury laws help or hinder resolution of a...Ch. 4 - Whether the product market or the labor market,...Ch. 4 - Other than the demand for labor, what would be...Ch. 4 - Suppose that a 5 increase in the minimum wag...Ch. 4 - Under what Circumstances would a minimum wage be a...Ch. 4 - Suppose the U.S. economy began to grow more...Ch. 4 - If the government imposed a federal interest rate...Ch. 4 - Why are the factors that shift the demand for a...Ch. 4 - During a discussion several year; ago on building...Ch. 4 - Identify each of the following as involving either...Ch. 4 - Predict how each of the following events will...Ch. 4 - Predict how each of the following economic changes...Ch. 4 - Table 4.6 shows the amount of savings and...Ch. 4 - Imagine that to preserve the traditional way of...Ch. 4 - What happens to the price and the quantity bought...
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