4. Minimum wage legislation The following graph gives the labor market for the fastfood industry of the imaginary city of Combopolis. 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. WAGE (Dollars per hour) to o _. a: _. a) _. 4s _. N _. o on m is N o Supply _______..!. I Demand - + I + __ I I I I I I " I I I l l . lI I l l l l I O 90 180 270 360 450 540 630 720 810 900 LABOR (Hundreds of workers) Graph Input Tool Market for Labor in the Fast Food Industry Wage (Dollars per hour) Labor Demanded (Hundreds of workers) 6 900 \\ (2/ Labor Supplied (Hundreds of 378 workers) In this market, the equilibrium wage is I:] per hour, and the equilibrium quantity of labor is :l hundred workers. Suppose the mayor of Combopolis introduces a legal minimum wage of $6 per hour. This type of price control is called a V . 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 (Dollars per hour) (Hundreds of workers) (Hundreds of workers) Pressure on Wages 12::_v 8::4 True or False: A minimum wage below $10 per hour is a binding minimum wage in this labor market. O True 0 False