-The Table Above Shows the Demand for and Supply of Labor

question 62

Essay

-The table above shows the demand for and supply of labor in a small less developed country.
a) Draw the demand and supply curves. What are the equilibrium wage and the level of employment?
b) Currently, the minimum wage is set at $4.50 per hour. How many hours are worked? How many hours of labor are unemployed?
c) If the minimum wage is raised to $6 per hour, what are employment and unemployment?

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Definitions:

Aloud

To say something in a voice that can be clearly heard; not silently or in a whisper.

Exponent

A mathematical notation indicating the number of times a number is multiplied by itself.

Square

A geometric figure with four equal sides and four right angles, or the mathematical operation of multiplying a number by itself.

Calculate

To determine mathematically the amount or number of something.