1. Many teenagers and young adults typically join the labour market in lower - skill , entry level jobs . While not restricted to these specific industries , many of these jobs are in the retail , accommodation and food services and cultural / recreation industries . Most jobs in these industries for this age group are part time ( i.e. less than 35 hours worked per week on average ). A typical worker in this category averages 100 hours worked per month . The table below describes the quantity demand and supply for this age group given the wage rate paid . Use this table to answer the questions below .

a) What is the equilibrium wage rate and employment level, in both total hours worked and total number of jobs, for workers aged 15-24 in Saskatchewan ? Why ? Make sure to provide your rationale/calculations to support your answer.

b) Like all provincial governments , the Government of Saskatchewan has labour legislation that sets out the rights , roles and responsibilities of employers and workers alike . A piece of that legislation is a minimum wage. The minimum wage in Saskatchewan is currently $11 per hour. What is the equilibrium wage rate and employment for workers aged 15-24 in Saskatchewan ? Is the minimum wage a price ceiling, price floor or quota? Is the minimur wage binding in SK? Will a surplus or shortage be created by the minimum wage? What if any , deadweight loss is created by the minimum wage ? Why? Make sure to provide your rationale / calculations to support your answer .

c) Minimum wages are a somewhat controversial public policy tool. 'Free-market research institutes, like the Fraser Institute, argue that minimum wages hurt workers because they limit job opportunities and create unemployment for young workers. 'Progressive' research institutes, like the Canadian Centre for Policy Alternatives (CCPA), argue that minimum wages in Canada do not pay a 'living wage'. While estimates vary, groups like the CCPA suggest a living wage is between $15 per hour to $20 per hour depending on the cost of living in a Canadian province. Based on estimates in SK, the CCPA is advocating the Government of Saskatchewan to raise the minimum wage from $11 per hour to $15 per hour. ion If the minimum wage is raised to $15 per hour, what is the equilibrium wage rate and employment for workers aged 15-24 in Saskatchewan? Will a greater surplus or shortage be created by the higher $15 per hour minimum wage? What, if any, deadweight loss is created by the higher $15 per hour minimum wage? Is the CCPA's recommendation to increase the minimum wage to $15 per hour good public policy choice or not? Why or why not? Make sure to provide your rationale/calculations to support your answer.

d) Draw a graph of the SK labour market using the information from parts a) c). Make sure to carefully label all of the relevant information (e.g. prices, quantities, axes, curves, etc.). (

\begin{tabular}{|c|c|c|} \hline Wage & Quantity Demanded & Quanthy Supplled \\ \hline$ per Hour & Nillions of Hours Per Month & Millons of Hours Per Month \\ \hline 20.00 & 0.0 & 19.0 \\ \hline 19.00 & 0.0 & 18.0 \\ \hline 18.00 & 1.0 & 17.0 \\ \hline 17.00 & 2.0 & 16.0 \\ \hline 16.00 & 3.0 & 15.0 \\ \hline 15.00 & 4.0 & 14.0 \\ \hline 14.00 & 5.0 & 13.0 \\ \hline 13.00 & 6.0 & 12.0 \\ \hline 12.00 & 7.0 & 11.0 \\ \hline 11.00 & 8.0 & 10.0 \\ \hline 10.00 & 9.0 & 9.0 \\ \hline 9.00 & 10.0 & 8.0 \\ \hline 8.00 & 11.0 & 7.0 \\ \hline 7.00 & 12.0 & 6.0 \\ \hline 6.00 & 13.0 & 5.0 \\ \hline 5.00 & 14.0 & 4.0 \\ \hline 4.00 & 15.0 & 3.0 \\ \hline 3.00 & 16.0 & 2.0 \\ \hline 2.00 & 17.0 & 1.0 \\ \hline 1.00 & 18.0 & 0.0 \\ \hline 0.00 & 19.0 & 0.0 \\ \hline \end{tabular}