Principles of Microeconomics, California Edition
2nd Edition
ISBN: 9780393622102
Author: Dirk Mateer, Lee Coppock
Publisher: NORTON
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Question
Chapter 6, Problem 7SP
To determine
Determine the number of low-skilled laborers who will be unemployed when the minimum wages are $8 and $6 per hour.
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Check out a sample textbook solutionStudents have asked these similar questions
$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,
OA. some people who want a job can't get one;
everyone who wants a job has one
B. firms cannot hire all the labor they want;
everyone who wants a job has one
OC. everyone who wants a job has one;
firms cannot hire all the labor they want
OD. everyone who wants a job has one;
some people who want a job can't get one
590-
580-
570-
560-
550
540-
530-
520-
510+
9.8
Wage rate (dollars per week)
A
D
9.9
10.1
10
Quantity (millions of hours per year)
S
10.2
Next
Q
Q
G
How does an increase in the minimum wage affect the economy ?
Click on the icon to read the news clip, then complete the following steps.
The graph shows the market for fast-food workers.
Draw a point to show the wage rate and the number of fast-food workers employed
if the minimum wage is:
1) $13.00 an hour. Label the point 1.
2) $15.00 an hour. Label the point 2.
In the graph, at a minimum wage of $15.00 an hour.
wage of $13.00 an hour
OA. some workers are unemployed;
no one is unemployed and firms have all the workers they want
OB. some workers are unemployed;
firms cannot hire as many workers as they want
; and at a minimum
OC. firms cannot hire as many workers as they want;
no one is unemployed and firms have all the workers they want
D.
no one is unemployed and firms have all the workers they want;
some workers are unemployed
M
16.00
15.00-
14.00-
13.00-
12.00-
11.00-
10.00-
Wage rate (dollars per hour)
50
A
S
100 150 200 250 300 350
Quantity (thousands of workers)
>>> Draw only the objects specified in the question.
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Chapter 6 Solutions
Principles of Microeconomics, California Edition
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Similar questions
- What is a minimum wage? Explain why it may fail to help the poor households in an economy.arrow_forwardWhat impact does the minimum wage have on the economy?arrow_forwardFind 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 $15/hour minimum wage? Explain your reasons. Did the article influence your thinking at all? Don't forget to cite your sources.arrow_forward
- Compare the two labor market graphs below, representing the supply and demand of low-skilled labor, medium-skilled labor, and high-skilled labor respectively. The y-axis is the price of labor ($ per hour) and the X-axis is the number of jobs (in 100,000 jobs). How will the impact of this increase in the minimum wage affect each of these markets?arrow_forwardHow do minimum wages affect wages, employment, and unemployment?arrow_forwardCompare the three labor market graphs below, representing the supply and demand of low-skilled labor, medium-skilled labor, and high-skilled labor respectively. The y-axis is the price of labor ($ per hour) and the X-axis is the number of jobs (in 100,000 jobs). How will the impact of this increase in the minimum wage affect each of these markets?arrow_forward
- What Is the Effect of the Minimum Wage on Employment ?arrow_forwardDraw a supply-demand diagram representing the impact of a minimum wage in the labor market. What does economic theory predict about the change in employment with the introduction of or increase in a minimum wage? How does the prediction above vary with elasticity of labor supply and labor demand?arrow_forwardWhat are the possible effects of minimum wage increase to the economy?arrow_forward
- Suppose you were preparing a memo for the White House on the effects of a large increase in the minimum wage. What would you write about the effects on employment, unemployment, job training, and working conditions? Who benefits and who loses from a higher minimum wage?arrow_forwardSummarize the evidence regarding the impact of the minimum wage on employment.arrow_forwardThe minimum wage originally was only 25 cents an hour. Today it is $7.25 an hour. Assume that Congress is considering raising the minimum wage again and your U.S. representative is asking for public opinion on this issue. Write a letter to your representative with arguments for and against a higher minimum wage.arrow_forward
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