EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Chapter 6, Problem 12APA
To determine
Effect of change in the minimum wage on worker’s surplus, firm’s surplus, and the efficiency.
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$30 a week boost to minimum wage
The government has increased the minimum wage by $30 a week to $570 a week.
Unions wanted a $35 a week increase, but employers argued that that level of
increase was unaffordable and would send smaller firms to the wall.
Source: ABC Australia, February 11, 2
On a graph of the market for low-skilled labor, show the effect of the $30 a week
increase in the minimum wage on employment of low-skilled labor.
The graph shows the market for low-skilled labor.
The y-axis label is Workers per week
Workers per week
and the x-axis label is
Draw a point on the market supply curve and label it S.
Draw a point on the market demand curve and label it D.
Draw a point to show the wage rate and workers employed if the minimum wage is
set at:
1) $540 a week. Label the point 1.
2) $570 a week. Label the point 2.
Draw an arrow to show the change in employment from the increase in the
M
590-
580-
570-
560-
550-
540-
530-
520-
510-
980
Y
990
1000
X
1010
1020
>>> Draw only the…
$30 a week boost to minimum wage
The government has increased the minimum wage by $30 a week to $570 a week.
Unions wanted a $35 a week increase, but employers argued that that level of
increase was unaffordable and would send smaller firms to the wall.
Source: ABC Australia, February 11, 2
On a graph of the market for low-skilled labor, show the effect of the $30 a week
increase in the minimum wage on employment of low-skilled labor.
The graph shows the market for low-skilled labor.
The y-axis label is
and the x-axis label is
Draw a point on the market supply curve and label it S.
Draw a point on the market demand curve and label it D.
Draw a point to show the wage rate and workers employed if the minimum wage is
set at:
1) $540 a week. Label the point 1.
2) $570 a week. Label the point 2.
Draw an arrow to show the change in employment from the increase in the
590-
580-
570-
560-
550-
540-
530-
520-
510-
980
Y
990
1000
X
1010
1020
>>> Draw only the objects specified in the question.…
$30 a week boost to minimum wage
The government increased the minimum wage by $30 a week to $570 a week.
Unions wanted a $35 a week increase, but employers argued that a $35 a week
increase was unaffordable.
Source: ABC Australia, February 11, 2011
The graph shows a market for low-skilled labor. If the minimum wage is set at
$570 a week,
If the minimum wage is set at $540 a week,
O A. everyone who wants a job has one;
firms cannot hire all the labor they want
OB. firms cannot hire all the labor they want;
everyone who wants a job has one
OC. everyone who wants a job has one;
some people who want a job can't get one
OD. some people who want a job can't get one;
everyone who wants a job has one
M
590-
580-
570-
560-
550-
540-
530-
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9.8
Wage rate (dollars per week)
D
S
9.9
10
10.1
10.2
Quantity (millions of hours per year)
O
J
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Chapter 6 Solutions
EBK ECONOMICS
Ch. 6.1 - Prob. 1RQCh. 6.1 - Prob. 2RQCh. 6.1 - Prob. 3RQCh. 6.1 - Prob. 4RQCh. 6.2 - Prob. 1RQCh. 6.2 - Prob. 2RQCh. 6.2 - Prob. 3RQCh. 6.2 - Prob. 4RQCh. 6.2 - Prob. 5RQCh. 6.3 - Prob. 1RQ
Ch. 6.3 - Prob. 2RQCh. 6.3 - Prob. 3RQCh. 6.3 - Prob. 4RQCh. 6.3 - Prob. 5RQCh. 6.4 - Prob. 1RQCh. 6.4 - Prob. 2RQCh. 6.4 - Prob. 3RQCh. 6.4 - Prob. 4RQCh. 6.4 - Prob. 5RQCh. 6.5 - Prob. 1RQCh. 6.5 - Prob. 2RQCh. 6.5 - Prob. 3RQCh. 6.5 - Prob. 4RQCh. 6 - Prob. 1SPACh. 6 - Prob. 2SPACh. 6 - Prob. 3SPACh. 6 - Prob. 4SPACh. 6 - Taxes (Study Plan 6.3) 5. The table in the next...Ch. 6 - Prob. 6SPACh. 6 - Prob. 7SPACh. 6 - Prob. 8SPACh. 6 - Prob. 9APACh. 6 - Prob. 10APACh. 6 - Prob. 11APACh. 6 - Prob. 12APACh. 6 - Prob. 13APACh. 6 - Prob. 14APACh. 6 - Prob. 15APACh. 6 - Prob. 16APACh. 6 - Prob. 17APACh. 6 - Prob. 18APACh. 6 - Prob. 19APACh. 6 - Prob. 20APACh. 6 - Prob. 21APACh. 6 - Prob. 22APACh. 6 - Prob. 23APA
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