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Question: the following graph shows the labor market in the fastfood...

Question details

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 will not be graded on any changes you make to this graph.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.

Graph Input Tool Market for Labor in the Fast Food Industry 20 18 6 (Dollars per hour) 16 Labor Demanded (Thousands of workers) 232Labor Supplied 168 (Thousands of workers) 2 12 10 . tand 0 40 80 120 180 200 240 280 320 380 400 LABOR (Thousands of workers)

In this market, the equilibrium hourly wage is___, and the equilibrium quantity of labor is___ thousand workers.

Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a   .

For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls.

Wage

Labor Demanded

Labor Supplied

Pressure on Wages

(Dollars per hour)

(Thousands of workers)

(Thousands of workers)

12   
8   

True or False: A minimum wage below $10 per hour is a binding minimum wage in this market.

True

False

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