Discuss how minimum wage, one of the most popular price floors, specifically affects the labor market. (Be sure to briefly explain the labor market in your answer as it's a little different from other markets in terms of who we think of as on the demand and supply sides of the market.
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Discuss how minimum wage, one of the most popular
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- A case study in this chapter discusses the federal minimum-wage law. Suppose the minimum wage is $7 per hour in the market for unskilled labor, as shown on the following graph. Use the grey point (star symbol) to indicate the market equilibrium wage and quantity of labor in the absence of a minimum wage. Then use the purple point (diamond symbol) to indicate the level of employment at the minimum wage provided, and use the orange point (square symbol) to indicate the quantity of labor supplied at this minimum wage. Finally, use the green polygon (triangle symbols) to show the total wage payments to unskilled workers. Market EquilibriumMinimum Wage OutcomeLabor Supplied at Minimum WageTotal Wage Payments012345678910109876543210Wage (Dollars per hour)Quantity of Labor (Millions of workers)DemandSupplyMinimum Wage At the minimum wage of $7 per hour, the level of unemployment is million workers, and the total wage payments to workers are million. Now suppose the…On page 104 of the third (2019) edition of Naked Economics by Charles Wheelan, Wheelan discusses the possible outcomes of minimum wage. Based on what Wheelan has written and the conversations about minimum wage in the class, which of the below statements is the LEAST likely to be correct if the minimum wage (a price floor) is placed well above the market clearing (equilibrium) wage? Group of answer choices The higher the minimum wage is set above the market clearing or equilibrium rate the more likely it is benefit all workers, as everyone's wages will have increased, and employers will not lay off workers because of the higher wages. The higher minimum wage will benefit those who continue to have a job at the higher wage, but will hurt those who are laid off because employers will hire fewer workers at the higher wage rate. In an era of global production and a global labor pool in which wages in the U.S. are higher than the wages paid to workers in countries such as Mexico, the…How does a price floor below equilibrium affect the market? How does a price floor above equilibrium affect the market? Discuss how minimum wage, one of the most popular price floors, specifically affects the labor market. (Be sure to briefly explain the labor market in your answer as it's a little different from other markets in terms of who we think of as on the demand and supply sides of the market.)
- assume that a minimum wage already exists in society. Please explain the effects on the economy of increasing the minimum wage. Be sure to discuss who gains and who loses(Consumer and Producer surplus) as well the inefficiencies that this price floor would create. Make sure you show this graphically as well.Read the following article, which introduces one of the most debated topics in economics: minimum wage. Then answer the question that follows. ▼ THE DOUBLE-EDGED SWORD OF MINIMUM WAGE, BY THE APLIA ECONOMICS TEAM While the federal minimum wage of $7.25 per hour has remained unchanged since 2009, 20 states increased their minimum wage at the start of 2017. For example, in Massachusetts, the minimum wage rose from $10 to $11 per hour, affecting about 291,000 workers according to an article from Area Development (Dale D. Buss, "Raising Minimum Wages: A Double-Edged Sword," Area Development, Q2 2017). In California, the minimum wage went up 50 cents, to $10.50 per hour, boosting pay for 1.7 million people. Across the nation, about 4.3 million people received a raise because they earn less than the new minimum where they live, according to the Economic Policy Institute. As minimum wages rise across the United States, most of the affected jobs are low-wage positions in sectors such as…Vermont's minimum wage will increase by 63 cents on January 1, 2023 to $13.18 an hour. In a sentence or two (accompanied by a demand-supply diagram), briefly describe under what circumstances the higher minimum wage would not affect employment in a particular labor market if the minimum wage is set above the labor market's equilibrium wage.
- Bill raising federal minimum wage to $15 heads to U.S. House floor The bill to gradually raise the federal minimum wage to $15 from $7.25 by 2024 has cleared a legislative hurdle that sets it up for a vote by the House of Representatives in the coming weeks. What will be the effects of a $15 an hour minimum wage? If the minimum wage rate of $15 is above the equilibrium wage rate, then setting the minimum wage at $15 an hour will O A. minimize the resources used in job search O B. increase employment and eliminate any deadweight loss O C. increase unemployment and create a deadweight loss O D. create an efficient labor market O E. increase the number of low-skilled jobs available With a $15 minimum wage, O A. all workers gain O B. all employers and workers lose OC. only small businesses lose O D. all workers and businesses gain O E. employers lose and workers who can't find jobs lose. Workers who find jobs gainThe most prominent example of a price floor in industrialized market economies is a minimum (or award) wage. Demonstrate how a minimum wage is likely to affect the total number of workers employed and the unemployment rate. Are all workers made better off by an increase in the minimum wage? Explain. What is the key determinant of the magnitude of the cost of an increase in the minimum wage? What Australian legislation provides a safety net of minimum entitlements for employees?Suppose the government imposes a price floor in the labor market(minimum wage legislation). In your answer be sure to examine the potential impact on unemployment and the potential on small businesses. a) draw a graph of the unskilled labor market and show the equilibrium wage rate and the equilibrium quantity of labor hired. b) assume the government imposes an effective price ceiling in the unskilled labor market. Show the price floor in your graph. Indicate what will happen to quantity demanded and quantity supplied of labor over time? Show in graph. c) would a shortage or surplus results? illustrate in your graph.
- Choose the false statement about monopoly. O Natural monopolies usually enjoy economies of scale in production over a large range of output. ○ The profit-maximizing monopolist sets its price as a percentage markup over the marginal cost. ○ Patents are a possible reason for monopolies to exist. ○ If the monopolist tries to sell one more unit, it faces a positive price effect and a negative quantity effect.The minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for labor, with the quantity of labor measured on the horizontal axis and the wage rate on the vertical axis, show the effect on the labor market of a minimum wage set above the equilibrium wage rate. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Graph Input Tool (? Market for Labor in the Fast Food Industry 20 I Wage (Dollars per hour) 18 6. 16 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) Supply 232 14 12 10 Demand 4 40 80 120 160 200 240 280 320 360 400 LABOR (Thousands of workers) WAGE (Dollars per hour)