1 For those who feel the Bern In a country there is a perfec

1.

For those who feel the Bern. In a country there is a perfectly competitive labor market along with a monopsonist. For example, a firm in a remote rural area has a monopsony power due to labor immobility. The attached file shows the graphs for both. Currently _____ workers have jobs.

2.

For those who feel the Bern. In a country there is a perfectly competitive labor market along with a monopsonist. The attached file shows the graphs for both. A new socialist president named Sernie Banders wins the election and with the help of the newly elected parliament imposes a minimum wage of $15 per hour onallemployers. As a result the total number of workers employed will equal _____

Could you please give detailed solutions? Thank you.

The Perfectly Competitive Labor Market $18 $17 $16 $15 $14 $13 $12 $11 $10 $9 $8 $7 $6 S5 $4 $3 $2 $1 $0 Labar 0 2 4 6

Solution

1) . from graph 1

S labor point is(2,$9) means 2 people are working for $9

similerly next point is (3,$11) , 3 people are working

(4,$13)-->4 people

(5,$15)-->5 people

(6,$17)--> 6 people

add all the above = 6+5+4+3+2=20

now we have to find D labor

(1,$16)-->1

(2,$15)-->2

(3,$14)-->3

(4,$13)-->4

(5,$12)-->5

(6,$11)-->6

add all these = 21

total number of jobs=21+20 =41

2). From graph2 find the y co ordinate which has equal or greater than 15

so total number of workers employed =5+6+7+8+9+10+11

= 56