it Edge 2-00148ck 2 1464388791161 AC1428240 Attempts Keep the Highest:14 4. Mini
ID: 1216046 • Letter: I
Question
it Edge 2-00148ck 2 1464388791161 AC1428240 Attempts Keep the Highest:14 4. Minimum wage legislation 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 w nat be graded on any changes you make to ths graph. Note: Onc e you enter a value in a white field, the graph and any corresponding amounts in each gray field will change accordingly Graph Input Tool Market for Labor in the Fast Food Industry por hour) 14 500 Labor Suppied 210 10-5SExplanation / Answer
Answer 1:
The equilibrium hourly wage is $5.
Equilibrium quantity of labor is 250 thousand workers.
Price flooring.
At $9, the values can be of labor demanded and supplied can be obtained from the graph by entering in the white field. The pressure on wages is to increase as labor demanded is more than labor supplied.
At $12, the pressure on wages is to decrease as labor demanded is less than labor supplied.
True. Any wage above the equilibrium wage rate is binding.
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