1. Mkt. for bakery workers. A binding minimum wage is imposed in the market for bakery...

1. Mkt. for bakery workers. A binding minimum wage is imposed in the market for bakery workers. Show the minimum wage Wmin, the number of workers who will have jobs at the new minimum wage Emin, and the Surplus (Su) or shortage (Sh), the total surplus (TS), the deadweight loss (DWL).

2. Mkt. for hand‐made bagels. The change in labor market for bakery workers affects supply/demand of bagels because ____________ _________________________. Show the effect of the change workers’ wages. Equilibrium price___, equilibrium quantity____ .

3. Mkt. for machine‐made bagels. The change in the price of hand‐made bagels affects supply/demand of machine‐ made bagels because_________________________. Show the effect of the change in the price of hand‐made bagels. Equilibrium price___, equilibrium quantity__ .

Show it in graphs please.

Expert Solution

Rahul Sunny answered 1 year ago

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