In Figure 2.21, the initial equilibrium wage is $10 per hour, and employment is 40 million hours per year.

a. Suppose that the government sets a minimum wage of $5 per hour. What effect does this minimum wage have on the wage rate and quantity of employment? Draw a graph to support your answer.

b. Suppose that the government sets a minimum wage at $15 per hour. What effect does this minimum wage have on the wage rate and quantity of employment? Draw a graph to support your answer.