Wage Rate (Dollars per hour) Labour (theusands of workers) Demanded 400 Labour (

Question

Wage Rate (Dollars per hour) Labour (theusands of workers) Demanded 400 Labour (theusa in this market, the equilibrium hourly wage is_____, and the equilibrium quantity of labour workers. Imagine the Australian House of Representatives Introduces a bill to legislate a minimum hourt type of price control is called a____________. At a wage of $8 per hour, the quantity of labour firms will demand is_______workers, labour workers will supply is______workers. Therefore, there will be_______workers in this market. In the absence of any price controls, this would exert_________until the labour market achieves equilibrium. However, with a price control in place, the labour not be able to reach its equilibrium. (Economists call a minimum wage that prevents the labour

Explanation / Answer

EQUILIBRIUM WAGE RATE IS $6 AND QUANTITY IS 200.

THIS TYPE OF PRICE CONTROL IS CALLED A PRICE FLOOR.

AT $8 THE DEMAND WILL BE 100 LABORS AND SUPPLY WILL BE 450 THEREFORE THERE WILL BE UNEMPLOYED WORKERS IN THE MARKET.IN ABSENCE OF ANY PRICE CONTROL THIS WOULD EXERT PRESSURE UNTIL THE LABOR MARKET ACHE IVES EQUILIBRIUM.

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