MINDTAP Marco Martinez Aplia Homework Prices Free Controlled

MINDTAP Marco Martinez Aplia Homework: Prices: Free, Controlled, and Relative Due on Jan 14 at 11:59 PM PST 4. Minimum wage legislatlon The following graph shows the labor market in the fast-food Industry in the fictional town of Supersize City Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly Graph Input Tool Market for Labor in the Fast Food Industry 20 18 16 14 12 1 Wage Dolars per hour) 320 Labor Demanded (Thousands of workers) 480Labor Supplied Thousands of workers) 0 80 160 240 320 400 480 560 640 720 800 LABOR (Thousands of workers)

Solution

1. Equilibrium wage = 10

2. Equilibrium quantity of labor = 400 thousands

3. Price ceiling

4. At wage of 14, labor demanded = 240

labor supplied = 560

Pressure on wage decrease.

5. At wage of 6, qty demanded = 560

labor supplied = 240

pressure on wage increase.

6. true