Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 12APA
To determine
Effect of change in the minimum wage on worker’s surplus, firm’s surplus, and the efficiency.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Economics
The graph on the right shows the demand for and supply of labor in a market with an equilibrium wage rate of $7 per hour.
Show the impact on the graph if a minimum wage of $9 per hour is enacted.
1. Using the point drawing tool, plot the point that illustrates the quantity of labor demanded when the minimum wage is set at $9 per hour. Label your point 'A.'
2.) Using the point drawing tool, plot a point that illustrates the quantity of labor supplied when the minimum wage is set at $9 per hour. Label your point 'B.'
Carefully follow the instructions above and only draw the required objects.
3. According to the graph, when the minimum wage is set at $9 per hoer, there will be ____
unemplovment of _____ workers in this market.
A. frictional; 4 million.
B. structural; 4 million.
C. frictional; 2 million.
D. structural; 2 million.
4
currently, the federal minimum wage is set at $7.25 per hour. a survey conducted bynewsweekmagazine (june 27, 2011) indicated that many americans would be willing to work for far less than the minimum wage—some as low as 25¢ per hour! what would happen if the u.s. government eliminated the minimum wage and instead let wages be set by the marketplace?
Find an article on either the current or attempts to raise the minimum wage.
Briefly summarize the article.
Are there any positive effects of higher minimum wages mentioned in the article? If so, what are they? Does the article cite evidence, theory, or both?
Are there any negative effects of higher minimum wages mentioned in the article? If so, what are they? Does the article cite evidence, theory, or both?
Do you support a $15/hour minimum wage? Explain your reasons. Did the article influence your thinking at all?
Don't forget to cite your sources.
Chapter 6 Solutions
Microeconomics (13th Edition)
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 - How does the elasticity of demand influence the...
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
Knowledge Booster
Similar questions
- 7 The Thai government actively intervenes in markets (Nophakhun Limsamarnphun, “Govt ImposesPrice Controls in Response to Complaints,” The Nation, May 12, 2012).a. The government increased the daily minimumwage by 40% to Bt300 (300 bahts ≈ $9.63).Show the effect of a higher minimum wage on the number of workers demanded, the supply of workers, and unemployment if the law is applied to the entire labor market.b. Show how the increase in the minimum wageand higher rental fees at major shopping malls and retail outlets affected the supply curve of ready-to-eat meals. Explain why the equilibrium price of a meal rose to Bt40 from Bt30.c. In response to complaints from citizens abouthigher prices of meals, the government imposed price controls on ten popular meals. Show the effect of these price controls in the market for meals.d. What is the likely effect of the price controls on meals on the labor market?arrow_forwardA case study dicusses the federal minimum wage law.a. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. using the supply and demand diagram of the market for unskilled labor, show the market wage,the number of workers who are employed, and the number of workers who are unemployed. Also show total payment to unskilled workers.b. Now suppose the secretary of labor proposes an increase in the minimum wage.What effect would this increase have on employment? does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither?c. What effect would this increase in the minimum wage have on unemployment? Does the change in unemployment depend on the elasticity of demand, the elasticity of supply, both elasticities or neither?d.if the demand for unskilled labor were inelastic, would the proposed increase in the minimum wage raise or lower total wage payments to the unskilled workers. would you answer…arrow_forwardQ.2.3 Using a supply-demand diagram, show the impact of a minimum wageimposed above the equilibrium wage.(Hint: Use the diagram to show those who are helped by the minimum wageand those who are hurt by the minimum wage) hi please can you help me with this graph and please explain the graph??arrow_forward
- If the minimum wage increased in december 01,2019 from $ 15 to $17.50 . Illustrate this new minimum wage on the diagram.arrow_forwardTrue or false: minimum wage always increases the welfare of workers. Explain your answer with a graph.arrow_forwardThe ticket price for a play at a Broadway theater is $160, and the theater is full every night. The theater owner, in consultation with a local non-profit arts group, wants to make attending the play more affordable, to open up the theater experience to patrons with more limited budgets. The owner decides to lower the ticket price to $50. Sketch a supply-anddemand graph that represents the market for these play tickets under this price-ceiling policy. Briefly explain why this market is not in equilibrium when the price ceiling is in effect. On your graph, clearly identify the size of the shortage or surplus this market will experience.arrow_forward
- A case study in this chapter discusses the federal minimum-wage law. Suppose the minimum wage is $7 per hour in the market for unskilled labor, as shown on the following graph. Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied at this minimum wage. Finally, use the green polygon (triangle symbols) to show the total wage payments to unskilled workers. Market EquilibriumMinimum Wage OutcomeLabor Supplied at Minimum WageTotal Wage Payments012345678910109876543210Wage (Dollars per hour)Quantity of Labor （Millions of workers)DemandSupplyMinimum Wage At the minimum wage of $7 per hour, the level of unemployment is million workers, and the total wage payments to workers are million. Now suppose the…arrow_forwardV11.The government of Andor decided to implement a a minimum wage of $18. The graph represents the labor market of Andor before the minimum wage was implemented. What is the deadweight loss created by the introduction of the minimum wage in Andor? Note that the quantity of labor hours is in hundreds.arrow_forwardAssume that the market for unskilled workers is perfectly competitive and that the demand for unskilled workers is relatively elastic. The government imposes a minimum wage in this market. Using a correctly labeled graph, show the following. a. The market wage rate paid to hired unskilled workers. b. The number of unskilled workers hired. c. The number of unskilled workers still looking for employment. Assume that unskilled workers are the primary source of labor in the agricultural industry, strawberries. Use a correctly labeled graph of the strawberry market to explain how the minimum wage law will affect the market for strawberries and identify the following. d. The price of strawberries. e. The quantity of strawberries.arrow_forward
- The ticket price for a play at a Broadway theater is $160, and the theater is full every night. The theater owner, in consultation with a local non-profit arts group, wants to make attending the play more affordable, to open up the theater experience to patrons with more limited budgets. The owner decides to lower the ticket price to $50. Sketch a supply and demand graph that represents the market for these play tickets under this price-ceiling policy. Briefly explain why this market is not in equilibrium when the price ceiling is in effect. On your graph, clearly identify the size of the shortage or surplus this market will experience.arrow_forwardConsider the labor market. Draw a graph illustrating an effective minimum wage in the labor market. Please make sure to label the axes accordingly and state who the supplier (workers or firms) and who the demander is (workers or firms). Indicate (clearly) consumer surplus, producer surplus, and deadweight loss in your graph.arrow_forwardLast year the average price for an airline ticket was $450, but the average price dropped to $375 this year due to a decrease in the demand for airplane travel. The accompanying table contains information on the supply of air travel. a. Using the information in the table, move the points on the graph to sketch a supply curve. b. Shade the area on the graph that represents producer surplus from the previous year when the price was $450. Also shade the area that represents producer surplus this year after the price has dropped to $375. Average ticket price Quantity supplied (thousands of seats) $150 200 $300 500 $450 800 $600 1,100 $750 1,400 c. Producer surplus this year is ____ than producer surplus last year. (refer to graph)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781305971509Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781285165912Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning