The graph shows the market for orange pickers in Florida If

The graph shows the market for orange pickers in Florida. If Florida introduces a minimum wage for orange pickers of $8.00 an hour, how many pickers are employed and how many are unemployed? If Florida introduces a minimum wage for orange pickers of $8.00 an hour. pickers are employed and pickers are unemployed. The lowest wage that some workers might be able to cam if a black market develops is

Solution

3000 pickers are employed and 5000 are unemployed. (Join demand and supply curve to quantity axis at $8. Demand is employed pickers and difference between demand and supply is unemployed pickers)

$4 per hour (wage rate when demand equals 5000 pickers.