Equilibrium wage rate and equilibrium hours worked

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Chapter 6, Problem 3SPA

To determine

Equilibrium wage rate and equilibrium hours worked

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1. In the labor market, the demand for labor represents A)The number of hours indivduals wish to work at all wages levels B)The number of hours of labor employers wish to employ at all wages levels C)The hours of overtimes workers are willing to work D)The number of employers in the market

The table gives the demand and supply schedules of teenage labor. Wage rate(dollars per hour) Quantity demanded(hours per month) Quantitysupplied(hours per month) 6 2,500 1,500 7 2,000 2,000 8 1,500 2,500 9 1,000 3,000 Calculate the equilibrium wage rate, the hours worked, and the quantity of unemployment. The minimum wage for teenagers is $8 an hour. How many hours are unemployed? 3. If the demand for teenage labor increases by 500 hours a month, what is the wage rate and how many hours are unemployed?use figure 1 and answer the following question (a) Consider the demand curve in Figure 1. What is the consumer surplus when the price is $4 a unit? (b) Consider the demand curve in Figure 1. What is the consumer surplus when the price is $11 a unit? (c) Consider the demand curve in Figure 1. If the price rises from $4 to $11 a unit, What will happen to consumer surplus? Use the…

Suppose the money wage rate rises from $40.00 to $46.20 an hour and consumer prices rises by 10 percent. What would be the effect in the labor market? We would expect _______ people to try to find a job and employed people to want to work _______ hours. A. fewer; shorter B. more; longer C. the same number of; the same number of D. fewer; longer The _______ would _______. A. quantity of labor supplied; decrease B. supply of labor; decrease C. quantity of labor supplied; increase D. supply of labor;