The graph shows the market for gardeners organized by the Gardeners\' Federation
ID: 1129727 • Letter: T
Question
The graph shows the market for gardeners organized by the Gardeners' Federation in Detroit, Michigan What is the wage rate that gardeners earn and how many gardeners are employed? The wage rate that gardeners earn is $ an hour and the number o gardeners employed s When the Gardeners' Federation sets the minimum wage for gardeners at $35.00 an hour, gardeners Wage rate (dollars per hour) 5000T 45.00 40.00 35 00 30.00 are employed and they earn an hour. The number of gardeners unemployed is 25 2000 15.00 10.00 o 50 100 150 200 250 300 350 400 Quantity (gardeners)Explanation / Answer
Answer 1: The demand and supply curve intersect at a point at which quantity = 200 and wage rate = $30. So, the wage rate gardeners earn are $30 and the number of gardeners employed is 200.
Answer 2: When $35 is set as minimum wage, the number of workers demanded is 150. Also, since the minimum wage of $35 will be binding as it is more than the equilibrium wage. So, 150 gardeners are employed and they earn $35 an hour.
Answer 3: When the wage rate is $35, the number of gardeners demanded = 150 and the number of gardeners available for work = 250. So, number of gardeners unemployed = 250 - 150 = 100.
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