What is the equilibrium wage rate in an unregulated market (no minimum wage)?

Wage rate (dollars per hour) Labor supplied (millions of workers) Labor demanded (millions of workers)

11 7 1 10 6 2 9 5 3 8 4 4 7 3 5

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

True or false? A consequence of a minimum wage set above the equilibrium wage rate...

True or false? A consequence of a minimum wage set above the equilibrium wage rate in the market for unskilled retail workers will be a surplus of unskilled retail workers

(1) What is the impact of a minimum wage above the equilibrium wage on the quantity...

(1) What is the impact of a minimum wage above the equilibrium wage on the quantity of labor supplied and demanded? (Practice drawing a supply and demand graph that shows this. Notice how the impact is affected if the supply curve is flatter or steeper, i.e., more elastic or inelastic. I will post the graph(s) to this discussion thread, after your initial responses are due. You need not submit any graphs in this Discussion Topic post, but you may find...

If the minimum wage is below the equilibrium wage, the quantity demanded of labor will be...

If the minimum wage is below the equilibrium wage, the quantity demanded of labor will be more than the quantity supplied since the wage rate will not be legally allowed to reach the equilibrium. Select one: True False If an unemployed person becomes discouraged and quits actively seeking work, then, ceteris paribus, the unemployment rate falls and the size of the labor force decreases. Select one: True False Question text Suppose the total population for a particular country is 60...

Draw the labor market for workers with a minimum wage above the market rate. Label on...

Draw the labor market for workers with a minimum wage above the market rate. Label on your graph the minimum wage, quantity demanded, quantity supplied, and the price set by the market. Is there a shortage or surplus of workers? How do you know? Show on your graph. Show the area of consumer surplus. Show the area of producer surplus. Show the area of the DWL. Show the area of the potential loss from job search.

Question 36 At a current wage rate less than the market equilibrium wage rate, Select one:...

Question 36 At a current wage rate less than the market equilibrium wage rate, Select one: a. workers are willing to provide more labor than firms wish to hire. b. there is a shortage of labor. c. there is a surplus of workers, or unemployment. d. firms wish to hire fewer units of labor than workers desire to provide. Question 37 In principle, a tendency for firms to congregate in a single nation to reap trade-cost advantages related to key...

Wonderland just raised its minimum wage (which was already above the market equilibrium level). What would...

Wonderland just raised its minimum wage (which was already above the market equilibrium level). What would happen to the employment in Wonderland? 1) More people will enter the job market (i.e., look for jobs), 2) employers will want to hire less workers, 3) unemployment level will increase. 1) More people will enter the job market (i.e., look for jobs), 2) employers will want to hire more workers, 3) unemployment level will increase. 1) Less people will look for jobs, 2)...

Is the minimum wage a living wage? Under what circumstances would a minimum wage be a...

Is the minimum wage a living wage? Under what circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor? Should the government enforce a minimum wage? Should the government implement a living wage?

A rise in the equilibrium wage rate will result in what kind of change in the...

A rise in the equilibrium wage rate will result in what kind of change in the AD/AS model? A) the equilibrium price decreases B) the aggregate demand curve shifts right C) the short-run aggregate supply curve shifts right D) short-run aggregate supply curve shifts left

If the labor market was in equilibrium with a market wage of $10 an hour and...

If the labor market was in equilibrium with a market wage of $10 an hour and the state of NJ implement a min wage law of $15 an hour. Explain what type of policy Murphy implemented impact this will have on the market. (i.e price floor or price ceiling) Hint Draw the graph and explain in detail this markets the labor market will have.

Explain the characteristics of an "effective" minimum wage. What is the argument for the minimum wage?...

Explain the characteristics of an "effective" minimum wage. What is the argument for the minimum wage? What is the argument against the minimum wage?

Subjects