In a year, 130,000 aircraft mechanics and service technicians earned an average of $20 an hour whereas 30,000 elevator installers and repairers earned an average of $25 an hour. The skill and training for these two jobs are very similar.

Suppose that a government law required both groups of workers to be paid $22.50 an hour. Draw a graph to illustrate what would happen to the quantities employed of the two types of labor.

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FIGURE 20.9 Chapter Checkpoint Assignable Problems 5, 6 Wage rate (dollars per hour) LS elevator 35 30 25 20 15 10 5 0 20 40 LS aircraft X LD elevator 60 LD aircraft 80 100 120 140 160 Labor (thousands of workers)